World sugar surplus to grow due to India and Thailand – StoneX

In the season 2023/24 MY, the world sugar market is expected to be oversupplied due to increased production in India and Thailand, according to the brokerage company StoneX.

It is forecast that world sugar production will exceed demand by 3.88 million tons, which is more than the early estimates of 3.4 million tons. In particular, India’s production forecast increased by 1.7 million tons to 32.8 million tons, and Thailand’s by 500 thousand tons to 9.1 million tons.

The best production figures in Asia offset the decline in sugar production in Mexico and Brazil. However, in Brazil, the forecast for sugar cane production has been reduced from 622 million tons to 602 million tons due to dry weather, which will lead to a 9% reduction in yield.

As a result, despite the increased attention to sugar production, Brazil is not expected to have a record harvest in 2024/25 MY. Sugar production in the central-southern region of the country is estimated at 42.3 million tons, which is lower than previously expected.

Tags: India, Thailand, sugar