Global sugar surplus to hit record level in 2018-19
According to Global Platts/Kingsman, this surplus will be 12.59 million tons, up from the 11.46 million tons achieved the previous season.
The oversupply will mainly be driven by India which is expected to hit a record production level during the period under review. Moreover, South-Eastern Asian countries should produce 35.32 million tons of sugar against 33.69 million in 2017-18, hitting a peak since the 1959-60 season.
While the price per pound of sugar has been falling on the global market since a few years ago, some operators indicated that this could worsen in the future dropping below the 10 cent threshold. ■