LONDON (Reuters) - Commodity broker Marex Spectron has revised its forecast for the 2018/19 global sugar balance, switching its outlook to a small deficit due to expectations for lower output from Brazil, India, Thailand and the European Union.
The broker forecast a deficit 1.05 million tonnes (raw value) for the current 2018/19 season having earlier forecast a surplus of 3.21 million tonnes.
Marex Spectron pegged the shift on expectations for lower output in countries such as Brazil, India, Thailand as well as the EU as unfavourable weather and more focus on ethanol dent sugar production.
The shortfall will likely be offset by ample global stocks, after a massive surplus in the 2017/18 season, the broker said.
Marex Spectron said early signs also point to a potential deficit in the 2019/20 season, as low prices inspire farmers to switch away from cane or beet.
Reporting by Ana Ionova; editing by Jason Neely