je.st
news
Mountains of world inventory keeping sugar in bear hug
2015-01-16 08:18:57| Sugar Industry News
Raw sugar on Intercontinental Exchange( ICE) in New York has seen a fall of 60 per cent from a 30-year high of 36.08 cents a pound since February 2011 as the world market remains overwhelmed by mountains of stocks in major production centres, including India and also big importing countries like China. London-based sugar advisory group C Czarnikow says in the past three seasons alone, as much as 21 million tonnes (mt) in raw sugar terms were added to world inventory. Notwithstanding unfavourable weather to impact production from Brazil to Australia during 2014-15 (October-September), the global surplus, according to International Sugar Organisation (ISO), will still be 473,000 tonnes. Czarnikow, however, thinks world production this season will be ahead of demand by 600,000 tonnes. Taking a contrary position, the US Department of Agriculture (USDA) says this season will be the first since 2009-10 to see a rundown in sugar inventories. USDA estimates inventory depletion of 1.41 mt. How much sugar the cane crop will yield depends on weather during the growing period and therefore, every season is marked by periodic revision of production estimates. What, however, is unlikely to undergo correction is the Czarnikow forecast of world use growing 2.1 per cent in 2014-15 to 182.5 mt.
Tags: world
keeping
bear
inventory
Category:Chemicals
Latest from this category |
All news |
||||||||||||||||||
|
|||||||||||||||||||