LONDON: The world sugar market is on course to record a deficit of 1.62 million tonnes (raw value) in the 2019/20 season, analyst Green Pool said on Wednesday, lowering its estimate from a previous 1.96 million tonnes.
In its third forecast for the 2019/20 season, Green Pool also bumped up its projection for the global surplus in 2018/19 to 4.1 million tonnes from a previous forecast of 3.35 million.
There was a huge surplus of 19.43 million tonnes in 2017/18, it said.
Green Pool said the market is only slowly working its way through extremely large stocks, which it sees falling to 95.91 million tonnes in 2019/20 from 97.54 million in the previous season.
"A small-ish deficit - while a step in the right direction from a producers' perspective - probably needs to be larger to cause prices to move back to longer term average levels," the analyst house said in a report.
The expected shortfall in 2019/20 is mostly due to low prices weighing on production in some of the major export countries.
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