The International Sugar Organisation (ISO) on Tuesday revised down its forecast for a global sugar surplus in 2007/08 to 9.3 million tonnes from a previous prediction of 11.1 million tonnes made in November.
The ISO estimated the 2006/07 (October/September) global sugar surplus at 11.2 million tonnes. "The statistical outlook for the market up till the end of the season in September 2008 remains bearish and little upward pressure is expected on world market values by sugar fundamentals," the ISO said in its latest quarterly report.
"The bearishness of the statistical outlook is further reinforced by the projected trade surplus and high level of stocks," it added. "World export availability is expected to exceed import demand by a massive 3.3 million tonnes."
Ending stocks are projected to grow by 6.0 million tonnes by the end of the season, increasing the stocks/consumption ratio to 46.5 percent as against 43.9 percent in 2006/07 and 37.7 percent in 2005/06.
The ISO forecast world sugar production in 2007/08 at 168.4 million tonnes and consumption at 159.1 million tonnes. It said fund activity and a weak dollar had contributed to a surge in raw sugar prices, which have jumped by 28 percent so far this year.
Comments
Comments are closed.