By The Rio Times | Created at 2024-11-20 17:51:44 | Updated at 2024-11-22 03:57:42
1 day ago
The global sugar market anticipates a deficit in the coming years, according to recent projections from the International Sugar Organization (ISO).
The ISO forecasts a global sugar deficit of 3.58 million tonnes for the 2024/25 season, reflecting significant changes in production and consumption trends.
Brazil, a key sugar producer, has altered its production timeline, shifting more output to the pre-October window. This change boosted the 2023/24 season figures but is expected to reduce production in 2024/25.
The ISO projects world sugar production to fall by 1.1% in 2024/25, reaching 179.29 million tonnes. Global sugar consumption is predicted to rise to 182.87 million tonnes in 2024/25, a 0.8% increase from the previous year.
However, this growth remains below global population growth rates. Weather conditions continue to impact sugar production.
Sugar Market Faces Deficit Amid Production Shifts. (Photo Internet reproduction)Recent droughts and fires in Brazil’s Sao Paulo state have affected crops, with industry estimates suggesting up to 5 million tonnes of sugar cane may have been lost.
Global Sugar Market Dynamics
India faces its own challenges, with projections indicating a 2% decrease in 2024/25 sugar production. In contrast, Thailand expects an 18% increase in production for the same period.
The USDA provides a broader perspective, forecasting record global sugar production of 186.024 million tonnes for 2024/25, a 1.4% increase from the previous year.
They also predict record human sugar consumption of 178.788 million tonnes. Despite production increases, global sugar stocks are tightening.
The USDA projects 2024/25 global sugar ending stocks to fall by 4.7%, reaching a 13-year low of 38.339 million tonnes. Market analysts remain cautious about future supply.
Wilmar International warns of a potential shortage of Brazilian sugar in early 2025, while Rabobank has reduced its forecast for Brazil’s 2024/25 sugar production.
The ethanol market intertwines with sugar production trends, with global ethanol production expected to reach 117.99 billion liters in 2024.
As the sugar market navigates these complex dynamics, stakeholders must remain vigilant. Production shifts, consumption trends, and weather events will continue to shape the global sugar landscape in the coming years.
