December 13, 2016 / 6:34 PM / 9 months ago

Sucden sees small global sugar surplus, record crop in 2017/18

Parubai Govind Pawar, a 55-year-old female worker cuts sugarcane in a field in Degaon village in Solapur, in the western state of Maharashtra, India December 18, 2015. REUTERS/Danish Siddiqui/File photo

LONDON (Reuters) - Sugar production may rise to a record level in 2017/18 leading to a small global surplus following two deficit seasons, commodity trader Groupe Sucres et Denrees said on Tuesday.

“It is still early and highly uncertain to discuss 2017/18. It seems, however, that (except in CS Brazil) many key crops are on course for a decent increase, particularly India,” Sucden said in a quarterly report.

“Overall, 2017/18 crops might be 9 million tonnes above 2016/17 and post a new record,” the report said.

Sucden forecast there would be a global surplus of 1 million tonnes in 2017/18 (October/September) following deficits of 5 million in both the 2015/16 and 2016/17 seasons.

Global production was seen rising to 134.5 million tonnes from 125.3 million in 2016/17 with the largest increases for India (27.5 million from 22.5 million) and the European Union (17.7 million from 15.5 million).

“Plantings for the 2017/18 crop are ongoing in western India; the harvested area should increase significantly and (subject to the next monsoon), Maharashtra and Karnataka could produce 14 million tonnes in total, paving the way for a bumper Indian crop of 27.5 million,” Sucden said.

Reporting by Nigel Hunt; Editing by Greg Mahlich

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