The global sugar market faces surplus production
The global sugar market is subjected to negative dynamics due to the regular overproduction forecasts, AAA reports.
"Statisticians and analysts are rightly expecting the second consecutive season when India has a surplus of 5 million tons of sugar, which will negatively affect world markets. And this is only about India, for example, the forecast for Thailand and the European Union will soon be revised upwards," the agency informs.
A decrease in sugar production in Brazil cannot compensate for the growth in production in other countries. In Ukraine, sugar production is forecasted at the level of MY2018/19.
The average exchange prices for white sugar and raw sugar over the week decreased by USD 1.72 and USD 0.35 per ton. Since early July, prices have fallen by USD 15.26 for white sugar (London) and USD 8.69 for raw sugar (New York).
Previously it was reported that the CEO of the major sugar producer in Europe — the company Suedzucker, had stated that the trading conditions remain tough, yet he saw the potential for restoring the global sugar prices.