Adds different Datagro estimates, feedback from analyst
NEW YORK, Might 5 (Reuters) – The worldwide sugar provide stability is projected to swing from a deficit of 1.51 million tonnes within the 2020/21 season (Oct-Sept) to a surplus of two.74 million tonnes in 2021/22, sugar and ethanol consultancy Datagro mentioned on Wednesday.
Datagro’s chief analyst Plinio Nastari mentioned a manufacturing restoration in Thailand, one other good crop in India and better yields in Europe, regardless of frosts in France, had been the primary components behind the swing from a deficit to a surplus.
The market will nonetheless have a surplus though manufacturing in Brazil is predicted to drop to 36.Three million tonnes from 38.5 million tonnes in 2020/21 because the nation faces lack of rains.
Nastari mentioned throughout a presentation on Wednesday that he anticipated India to supply about 30 million tonnes in 2021/22 following the earlier season’s wonderful crop which is seen at 31.2 million tonnes.
Thailand’s sugar cane crop is seen rising to 85 million tonnes from 66 million, which is predicted to spice up the nation’s sugar exports to five.eight million tonnes from 3.9 million tonnes.
Datagro expects Russia’s sugar manufacturing to rise 18.5% to six.1 million tonnes in 2021/22.
However the consultancy expects a risky market regardless of the balanced provide and demand outlook, as a result of developments in Brazil the place the sugar season bought off to a really sluggish begin.
“We’ve got to attend for coming weeks to have extra readability on how cane crushing will progress within the center-south,” mentioned Bruno Wanderley, one other Datagro analyst participating within the presentation.
(Reporting by Marcelo Teixeira; Enhancing by David Clarke)
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