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