Global sugar production is expected to rise by 8.1 percent to 193.36 million tonnes in 2017/18 while consumption is forecast to climb by only 1.3 percent to 181.94 million tonnes. "This year's production response has undoubtedly been helped by a very good Asian monsoon, the results of which are only just beginning to emerge," Green Pool said in a report.
The analyst said it could be the first double-digit global surplus since 2012/13 and it was now expected to be larger than the sum of the deficits in 2015/16 and 2016/17 which totalled 8.29 million tonnes. Raw sugar prices rose to a peak of 15.37 cents a lb on Wednesday, the highest in more than one month. "There remains some disconnect between current market prices and the potential for a surplus of the size we are forecasting," Green Pool said.