The raw sugar futures contract is expected to end this year with an annual gain of more than 30%, as a reduced outlook for production in Brazil helps put the global market in deficit. This is according to a Reuters survey of 11 traders and analysts on August 20th. White sugar prices are expected to close 2021 at $520 per ton, up 5% from Thursday’s close and 24% above late 2020 levels. The research consensus is for a global deficit of 1.8 million tons for the 2020/21 season, followed by a deficit of 2.0 million tons in 2021/22. “We believe that lower production in Brazil due to drought and recent frosts, along with rising global consumption, will ensure that sugar prices will remain relatively high for the rest of this year,” said Samuel Burman, an analyst at Capital Economics. Survey participants had a median forecast of 32.9 million tons for sugar production in central-southern Brazil in 2021/22. The region had a sugar production record in 2020/21 of 38.46 million tons.
Sources: Money Times/Datamar News