Sugar production in Brazil, China will exceed demand by nearly 9.7 million tonnes combined during the 2011/2012 season that began in October, Kingsman estimates; Brazil's output projected at 32.77 million tonnes, China's 12.57 million tonnes
December 14, 2011
– According to an estimate provided by researcher Kingsman SA, sugar production in Brazil and China during the 2011-2012 season that began in October will exceed demand by a combined nearly 9.7 million tonnes, Bloomberg reported on Dec. 12.
Two months ago, sugar production in Brazil and China was expected to exceed demand by only 8.4 million tonnes.
Kingsman SA estimates that Brazil’s sugar output for the 2011-2012 season will be 32.77 million tonnes. Earlier, Kingsman had estimated that Brazil’s sugar output for the 2011-2012 season would be 31.19 million tonnes.
Kingsman SA projected that China’s sugar output for 2011-2012 will be 12.57 million tonnes. Kingsman’s earlier estimate had pegged China’s total 2011-2012 sugar output at 12 million tonnes.
The global surplus estimate of sugar on a national crop basis, which had earlier been pegged at 9.2 million tonnes, was reduced to 8.2 million tonnes.
The raw price of sugar fell by 26% this year as production outstripped demand.
India’s estimated demand for sugar was increased to 24.51 million tonnes, up from an earlier estimated demand of 23.9 million tonnes. India is the world’s largest sugar consumer.
According to Kingsman, Brazilian sugar exports during Brazil’s national crop year, which began during April 2011, will increase from an earlier estimate of 450,00 tonnes to 21.6 million tonnes.
The extra sugar will be used as exports, according to the report.
The primary source of this article is Bloomberg, New York, New York, on December 12, 2011.