LONDON: The International Sugar Organization (ISO) on Wednesday forecast a global sugar surplus in the 2022/23 October to September season, driven by record production.

The inter-governmental body’s quarterly update projected a global surplus of 5.6 million tonnes in 2022/23, compared with a deficit of 1.3 million tonnes the previous season.

A Reuters poll issued in late July had a median forecast of 2.8 million tonne surplus for 2022/23.

Global production in 2022/23 was forecast to rise to a record high of 181.9 million tonnes, up 4.5% from the previous season.

The rise was partly driven by an expected increase in production in Brazil to 38.5 million tonnes from the current season’s 33.1 million tonnes.

Thai sugar production was forecast to climb to 12.0 million tonnes, up from the previous season’s 10.1 million tonnes, as crops continue to recover from two years of drought.

Production in 2020/21 fell to only 7.1 million tonnes.

Global consumption was forecast to increase by only 0.5% to 176.3 million tonnes.