As the global sugar market braces for the upcoming challenges, forecasts point to a pronounced deficit in the near future. The 2023/24 season, which kicked off in October, is expected to witness a deficit of 4.36 million tons. This significant shortfall stems from Brazil’s substantial sugar production, which, despite its magnitude, struggles to offset dwindling outputs from other countries. This concern was a focal point at the recent Sugar and Ethanol Conference held in Brazil, where Datagro accentuated the growing market imbalance.
Adding to the industry’s apprehensions, Datagro predicts continuing this trend with a third successive deficit in the 2024/25 season, estimated at 1 million tons. It highlighted the looming challenges, expressing skepticism about the market’s ability to replenish its stocks anytime soon. Given that production has lagged behind consumption for three consecutive years, the sugar market is likely to remain constricted, emphasizing the urgency for well-thought-out strategies and timely interventions.
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