AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 132.66 Increased By ▲ 3.13 (2.42%)
BOP 6.89 Increased By ▲ 0.21 (3.14%)
CNERGY 4.57 Decreased By ▼ -0.06 (-1.3%)
DCL 8.92 Decreased By ▼ -0.02 (-0.22%)
DFML 42.75 Increased By ▲ 1.06 (2.54%)
DGKC 84.00 Increased By ▲ 0.23 (0.27%)
FCCL 32.90 Increased By ▲ 0.13 (0.4%)
FFBL 77.06 Increased By ▲ 1.59 (2.11%)
FFL 12.20 Increased By ▲ 0.73 (6.36%)
HUBC 110.01 Decreased By ▼ -0.54 (-0.49%)
HUMNL 14.40 Decreased By ▼ -0.16 (-1.1%)
KEL 5.53 Increased By ▲ 0.14 (2.6%)
KOSM 8.32 Decreased By ▼ -0.08 (-0.95%)
MLCF 39.67 Decreased By ▼ -0.12 (-0.3%)
NBP 65.50 Increased By ▲ 5.21 (8.64%)
OGDC 198.74 Decreased By ▼ -0.92 (-0.46%)
PAEL 26.00 Decreased By ▼ -0.65 (-2.44%)
PIBTL 7.62 Decreased By ▼ -0.04 (-0.52%)
PPL 159.00 Increased By ▲ 1.08 (0.68%)
PRL 26.24 Decreased By ▼ -0.49 (-1.83%)
PTC 18.35 Decreased By ▼ -0.11 (-0.6%)
SEARL 82.24 Decreased By ▼ -0.20 (-0.24%)
TELE 8.12 Decreased By ▼ -0.19 (-2.29%)
TOMCL 34.40 Decreased By ▼ -0.11 (-0.32%)
TPLP 8.98 Decreased By ▼ -0.08 (-0.88%)
TREET 16.88 Decreased By ▼ -0.59 (-3.38%)
TRG 59.49 Decreased By ▼ -1.83 (-2.98%)
UNITY 27.52 Increased By ▲ 0.09 (0.33%)
WTL 1.40 Increased By ▲ 0.02 (1.45%)
BR100 10,614 Increased By 206.9 (1.99%)
BR30 31,874 Increased By 160.5 (0.51%)
KSE100 98,972 Increased By 1644 (1.69%)
KSE30 30,784 Increased By 591.7 (1.96%)

World sugar production will outstrip demand by 12.59 million tonnes in the 2018/19 crop year that begins on Oct. 1, according to an industry presentation from sugar analysts at S&P Global Platts/Kingsman during New York "Sugar Week."
That's higher than the firm's outlook of 11.05 million tonnes and would represent the largest single-year surplus since at least 2006/2007, according to prepared remarks by Claudiu Covrig, senior agriculture analyst. It will come on the heels of a surplus in the current 2017/18 crop year of 11.46 million tonnes, revised from a previous forecast of 9.24 million tonnes.
Industry players have been raising their forecasts for another huge surplus due to the swelling supplies in India. "India could equal or surpass production in Brazil's center south," Covrig told Reuters along the sidelines of an industry event. "It's historic."
Covrig forecast the Indian crop would reach 35.326 million tonnes, raw value, up from 33.696 million tonnes in the current 2017/18 crop year. That would be the highest ever, according to US government records dating back to 1959/1960. The Indian figure would outstrip a forecast production in Brazil's center-south region of 33.582 million tonnes. Thailand's output in 2018/19 will remain high at 14.928 million tonnes, Covrig said.
The large excess has raw sugar prices languishing near their lowest since 2015 and margins for the world's cane refiners squeezed. A 2015 low of 10.13 cents per lb is now "vulnerable," with market players saying single-digit figures could be on the horizon, Claudiu said in his remarks, though he said he foresaw a longer-term recovery by late 2019 or early 2020.

Copyright Reuters, 2018

Comments

Comments are closed.