Prices for raw sugar are predicted to increase by 20% globally this year

A Reuters survey of 12 traders and analysts revealed that when the world market moves into a deficit in the following season, raw sugar prices are predicted to achieve an annual rise of about 20% in 2024.

Despite a little decline in the cane crop, the major production zone in Brazil, Centre-South, is likely to continue producing high volumes of sweetener since mills choose to produce it over ethanol, a biofuel.

But, India, the world's second-largest producer, is predicted to see a decline in output.                              

According to the survey, the worldwide sugar deficit for 2024–2025 would be 700,000 tonnes, whereas the surplus of 500,000 metric tonnes for the current season (2023–2024) (October to September) was predicted by the median estimate.

Elite producer Brazil's sugar output in the Center-South was predicted by the International Sugar Organisation (ISO) to be 42.1 million tonnes so far this season, while median projections for the forthcoming 2024/25 (April to March) season placed that number at 42.1 million tonnes.

Despite a Center-South cane crop that polls respondents predict would yield 620 million tonnes in the forthcoming 2024–2025 season as opposed to a projected 645 million tonnes this season, the ISO reports that there may be a little rise in Brazilian output the following season.

Forecasts for white sugar prices by the end of the year indicated that they would reach $700 per metric tonne, up 17% from levels observed at the end of 2023 and up 6% from Tuesday's closing.

(Sources: investing.com, reuters.com, iso.org)