Global sugar surplus shrinks to 1.1 mln tns on smaller crops

1. Global sugar surplus shrinks to 1.1 mln tns on smaller crops Global sugar surplus shrinks to 1.1 mln tns on smaller crops Brazil is the world's largest sugar-producing nation, followed by India and disruptions in their production affect global sugar pricing. Global Sugar Supply Global Sugar Supply After the disappointment with crops in places like India, Mexico, and the European Union, the global sugar market is expected to have a smaller supply surplus in 2022/23 (Oct.-Sept.) of 1.1 million tonnes compared to a March estimate of 2.5 million tonnes. In a presentation given as part of the New York Sugar Week on May 2, broker and analyst StoneX provided projections that indicated that the situation would only marginally improve in the upcoming season (2023/24), with a global supply surplus of 1.3 million tonnes. India, the second-largest producer of sugar in the world, has had its projected production of sugar reduced from 34.1 million tonnes in March to 32.8 million tonnes for the current season, which ends in September. Factors Affecting Sugar Production Factors Affecting Sugar Production The new crop for India in 2023–2024 was estimated to be roughly stable at 32.5 million tonnes. India's planted area is predicted to decrease by 4% the following season, and StoneX does not anticipate a recovery because the nation is expected to divert more sugarcane from sugar production to ethanol production.

2. El Nino, a weather phenomenon that alters rain patterns globally, would also be closely watched, it was stated, as it may cause Asia's soil moisture to decrease. Bruno Lima, the head of sugar analysis at StoneX, stated that El Nino is not likely to have an impact on Brazil's crops. He claimed that historical data showed that Brazil's center-south (CS) was able to increase sugarcane crush during the last two strong El Ninos in 2009 and 2016. Brazil's CS sugar production was raised from 36.8 million tonnes to 37.2 million tonnes in the brokerage's revised projection. But it warned that logistics might be a challenge. Concerns exist regarding the capacity of Brazilian ports to handle soybean, corn, and sugar crops that are at or near record levels. A further issue, according to Lima, is the farmers' delayed soy sales, which will cause the peak of the bean export season to coincide with the peak of the sugar export flow in June and July. If you are a sugar importer wishing to Buy Sugar In Bulk or a sugar exporter willing to export bulk sugar, then Tradologie.com is the right platform for you. Tradologie is a transaction-oriented platform that facilitates bulk agro-commodities trade completely from inquiry to delivery in a digital manner. The best quality and inspected commodities can be procured at prices that can be directly negotiated with the sellers, thereby giving more margins for both sellers and buyers along with the end consumers, reducing the overall cost of a trade. This platform hence grants sellers better access to new global buyers, increasing their overall business orders and profits, as there are no middlemen involved in the trade here. To register as a buyer, click here. To register as a seller, click here. To stay updated with the latest happenings in the agro-trade industry, follow Tradologie.com across all social media channels.