Deficit supports sugar prices, says Rabobank
Sugar prices increased 30% since mid-April. This increase is justified, in the assessment of Rabobank, a bank specialized in agribusiness.
The global sugar deficit is expected to be 8.5 million tonnes in the 2015/16 crop -October 2015 to September 2016.
In the next season, 2016/17, global demand will also be lower than the supply at 5.5 million tons, holding prices.
Of course, these estimates are still preliminary. But if Rabobank, which forecasts global production of 181 million tonnes in 2016/17, raised the crop by 3%, the deficit would practically disappear.
However, if the bank in a new crop revision, reduced production by 3%, the deficit could double.
(Source: Folha de S. Paulo)