The International Sugar Organization on Tuesday scaled back its global sugar deficit forecast for the 2016/17 season to 5.869 million tonnes, from a previous estimate of 6.19 million tonnes. The inter-governmental body also projected there would be a 5.359 million deficit in the 2015/2016 season.
Its quarterly update said that while the deficit is likely to end in 2017/18, fundamentals remain constructive and prices would be supported by low global inventories, which are anticipated to fall by 11.1 million tonnes. "Thus, the trade balance is extremely tight and may tighten further if there are unforeseen reductions in production," the report said.