Sugar production will exceed demand by almost 9.7 million metric tons for the 2011-12 season started in October, up from 8.4 million estimated two months ago on bigger crops in Brazil and China, researcher Kingsman SA said.
The crop in Brazil’s Center South region, the world’s biggest producing area, will be 32.77 million tons, up from 31.19 million tons previously estimated, Lausanne, Switzerland-based researcher Kingsman SA said in an e-mail today. China’s crop estimate is 12.57 million tons, up from 12 million tons.
Raw sugar prices have dropped 26 percent this year as demand lagged behind production. The estimate for demand inIndia, the world’s biggest consumer, was raised to 24.51 million tons from 23.9 million tons.
On a national crop basis, the global surplus estimate was lowered to 8.2 million tons from 9.2 million tons. For Brazil’s national crop year which started in April 2011, exports from the Center South will be 21.6 million tons, up by 450,000 tons from the previous estimate, Kingsman said.
“All this extra sugar will be exported,” Kingsman said in the report.