Falling sugar prices may lead to reduction of production in 2019/20 Mr

2019-03-18 12:09:41
Machine translation
Falling sugar prices may lead to reduction of production in 2019/20 Mr

as a Result of surplus sugar in the market last season, world sugar prices fell to the lowest in 5 years. In August the stock price of raw sugar dropped to 222 $/MT, the fall was restored to $300/MT, but later fell again to 275 $/t. the Main reason for falling prices is a good crop of cane in Brazil, but it is still unclear which part of it will go to the production of sugar, and some in ethanol production.

 

Analysts are making forecasts of world sugar balance for the new season.

 

By the French grain trader Sucres et Denrees SA, due to reduced production in India, the EU and Thailand the world sugar deficit in 2019/20 MG will be 4 million t

 

trader Sucden, Thailand will reduce sugar production by 10% to 12 million tons, since the local farmers instead of growing sugar cane give preference to more profitable crops. Domestic sugar prices fell by 20% after the government adjusted subsidies for private industry in accordance with the requirements of the WTO agreement.

 

India's sugar production will decrease from 31.7 million tonnes in 2018/19 MG to 26-27 million tonnes in 2019/20 Mr due to unfavorable weather conditions.

 

due to the fall in world prices for sugar farmers in the EU will reduce the acreage under sugar beet by about 5%.

 

the Green Pool Agency predicts deficit in 2018/19 MG at the level of 1.36 million tons.