The global sugar rally still has room for further gains due for the persistence of the commodity’s deficit next year, according to Tropical Research Services. The amount of raw sugar available for export will fall short of world import demand for the season that opens in October, according to Soft Commodities, survey company based in Wilton, Connecticut. Shortage will peak by the fourth quarter of this year at more than one million tons but will persist to a lesser extent until September 2022. Sugar futures market in New York is up 15% this year, as dry weather impacts productivity in Brazil, the world’s largest producer. Meeting global demand will make India (the second largest producer) approve once more export subsidies, or make prices rise further to ensure that mills choose to produce sugar for export, said Luciana Torrezan, from TRS. “Trade flow balances show a deficit because sugar is in India, the biggest stocks are in India. The market’s function would be to get that sugar out of India, either through more government subsidies or through proper export prices”, she said.
Source: Nova Cana (*Translated by Ia Niani)