The balance of the world market for sugar deteriorate in the 2021-2022 season that began in October due to lower production of China, one of the world’s largest importers, broker StoneX reported.
The season will see demand exceed production for the third consecutive year, said StoneX, which projected a supply shortfall of 1.9 million tonnes, higher than the 1.8 million tonnes it had forecast in November.
“Frost weather in Guangxi, a major sugar-producing region in China, and farmers’ shift to other crops considered more profitable reduced prospects for sugar production in the country,” StoneX said in a report.
The brokerage said it lowered its estimate for China’s sugar production by 300,000 tons to 10 million tons in the 2021-2022 period (October to September), down 6.3% from the previous season.
The situation, he explained, will lead to strong imports by China during the year, estimated between 4.5 million and 5.5 million tons.
The brokerage kept its opinion on Brazil’s south-central sugarcane new crop unchanged at 565 million tonnes, with sugar output at 34.5 million tonnes.
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