British trading major Czarnikow has increased its global sugar surplus forecast to 8.8 million tons for the 2024/25 season.This substantial rise of 3.4 million tons from earlier predictions suggests a production surge in the European Union, Thailand, and India.Global sugar production is expected to hit a record-breaking 189.7 million tons this year, surpassing the previous high set in the 2017/18 season.Such a milestone has significant implications, influencing global trade and economies reliant on sugar exports.In India, analysts expect favorable monsoons to increase sugar production by 2.2 million tons, reaching 33.7 million tons.Improved rainfall has also raised reservoir levels in key regions like Maharashtra and Karnataka, ensuring abundant crops.Surge in Global Sugar Surplus: A Forecast Shakeup for 2024/25.
(Photo internet reproduction)Meanwhile, Czarnikow remains optimistic about Brazils output despite subpar weather in the central sugarcane region.Experts believe the planted area in that region far exceeds estimates, boosting production prospects for the leading sugar producer.Conversely, the market expects global sugar consumption to slightly decrease by 200,000 tons to 180.8 million tons.This adjustment could reshape price dynamics and modify trade flows and global stockpiles.These forecasts play a pivotal role, shaping decisions from agricultural strategies to national policies in sugar-centric economies.They impact global markets, from your morning coffees cost to the broader financial stability of the agriculture sector.