Green Pool lowers 2016/17 global sugar deficit forecast

LONDON: The global sugar market faces a deficit in the 2016/17 season of 5.28 million tonnes, Green Pool Commodity Specialists said on Wednesday, smaller than the 5.80 million tonne shortfall they forecast in September.

Green Pool said the revision was driven largely by a lower estimate for consumption due to high global prices.

"Sugar prices have pushed to their highest since 2012, undoubtedly doing some damage to the consumption side of the sugar equation," Green Pool said.

ICE raw sugar futures rose to a peak of 23.90 cents a lb last month, the highest since July 2012. Green Pool also reduced its estimate for the 2015/16 season to a deficit of 7.52 million tonnes versus a previous forecast of 8.39 million.

"That difference was split about half-half between production and consumption changes," Green Pool said, adding it had raised its production forecast by 440,000 tonnes and cut its consumption figure by 430,000 tonnes.