Green Pool cuts 2016/17 sugar deficit and 2017/18 surplus
Published: 05/05/2017, 4:32:54 PM
Research firm Green Pool Commodities trimmed its forecast for a 2017-18 global sugar market surplus on Friday, according to Dow Jones.
Green Pool said it expects the global sugar balance to swing to surplus from deficit over the next year, albeit in a slightly less dramatic move than it had previously forecast.
The body expects the 2016-17 deficit to slip to 4.3 million metric tons from 5.2 million tons. For the 2017-18 season, Green Pool expects the global surplus to be 4.716 million tons, compared with its last estimate of 4.779 million tons.
Green Pool said that lower-than-expected consumption in India was a driving factor behind its reduced deficit forecast for this year. Green Pool forecast consumption would increase to 182.39 million tons in 2017-18 from 179.62 million tons in 2016-17--an increase of 1.54%.
The firm's production estimate was sharply higher, up 7% in 2017-18 to 188.11 million tons from 175.85 million tons in 2016-17.
"Consumption is a major issue for sugar, with global consumption growing only slowly," Green Pool's report said, adding that "some growth is being seen in developing countries, while consumption is actually falling in some developed countries."