Rise in Sugar Price Predicted

Estimates are that the future prices of sugarcane will increase by up to 13% due to drought in Brazil, which in 2013 accounted for 28% of global production of the grain.

Monday, May 26, 2014

A shortfall in global sugar production and consequently higher grain prices is what is seen in the medium term in the global agricultural market. The effects of climate on sugarcane crops in Brazil have resulted in a decline in the production of the world's largest producer.

"COPERSUCAR SA, an operator, predicts future prices of sugarcane will climb by 13% by the end of the year up to 20 cents a pound ... In the 2014-2015 season, which begins on October 1, demand could exceed harvested amounts by three million tonnes, according COPERSUCAR based in Sao Paulo. "

"Global demand will reach a record 167.6 million tonnes during the year ending September 30, extending two decades of increase which saw consumption grow 48% according to data from the U.S. Department of Agriculture."

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Fall in Sugar Production Forecast

February 2013

With the reduction in harvests in Mexico and India, sugar production could decline for the first time since 2009.

World production of sugarcane could decrease by 51% during the 2013-14 season compared to the 2012-13 period, as a result of the decline in prices caused by a fall in production in Mexico and India, according to researchers at Kingsman SA.

Will Sugar Production Go Up in Brazil?

February 2012

The level of global sugar prices will depend on the resilience of Brazil's 2012 crop, which in 2011 fell for the first time in 10 years.

In 2010/2011, the Brazilian sugar crop fell for the first time in 10 years, causing a drop in world sugar prices. Forecasts for the recovery of Brazil’s high production levels are mixed.

Expected Rise in Sugar Prices

January 2012

The forecasted decline in global supply signals the end of a period of plentiful harvests and the beginning of an upturn in prices.

International operators expect a reduction in world sugar production in the next harvest, which will mean the end of the abundance of the product since 2007, and they are keeping an eye on Brazil and India, the world's largest producers.

Sugar Outlook for 2009

March 2009

Sugar demand is expected to grow by 1.5% in 2009, half the 3% that it grew by in 2008.

The main reason for the decrease in demand, according to a report by F.O. Litch, is the slowdown in the global economy and declining production in India and Brazil.

It is expected that the price of raw sugar will rise and reach 16 cents per pound, marking an increase of 19% over the current price.

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