Platts Kingsman on Monday raised its forecast for an anticipated global sugar deficit in the 2016/17 season (October/September) by 570,000 tonnes to 6.45 million tonnes. For 2015/16, it estimated there would be a global sugar deficit of 5.21 million, up 200,000 tonnes from its previous forecast. Platts Kingsman that noted the combined deficit increase of about 770,000 tonnes for the two seasons was largely driven by downward revisions to production in Brazil.
"World sugar production was marked down mainly on the current crop in Center-South Brazil (down 860,000 tonnes) and a cut in North Northeast Brazil output expectations (212,000 tonnes) for the new season," Platts Kingsman said. "We might cut our Brazilian crop forecasts further if the tail of this ongoing crop is very short, but for the moment we prefer to wait and see how the weather and agricultural yields develop," the analyst said. The cuts for Brazil were partially offset by an improved outlook in the US where production was raised by 80,000 tonnes in 2015/16 and about 250,000 tonnes in 2016/17.