World-wide sugar usage must mature one.nine for every cent in the 2020/21 period (October-September) right after a drop of one.five for every cent in 2019/twenty owing to the Covid-19 pandemic, which will partly offset an anticipated creation enhance, Rabobank reported on Wednesday.
In its quarterly report on the world wide sugar market place, the Dutch bank revised its check out for the sugar supply stability in 2019/twenty from a deficit of four.three million tonnes to a deficit of one million tonnes, owing to increased creation in Brazil and reduce demand from customers.
It sees the stability shifting to a modest surplus of 2,00,000 tonnes in 2020/21, as India is anticipated to enhance creation to 33.five million tonnes, up sixteen for every cent from 2019/twenty.
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Rabobank, which specialises in the agricultural sector, saved its check out for Brazil’s Heart-South output at 36.four million tonnes, while projecting creation in Thailand at 7.eight million tonnes, a ten for every cent lessen from 2019/twenty.
“Revisions that have reduced our 2019/twenty deficit and developed a modest 2020/21 world wide sugar surplus point to a well-equipped market place in the coming 12 months,” the bank reported.
“In switch, this suggests that uncooked sugar prices will carry on trading in a USc eleven/lb to USc thirteen/lb selection – constrained to the downside by Brazil’s ethanol parity and to the upside by India’s export parity,” it reported.