World sugar intake need to mature one.nine for every cent in the 2020/21 season (October-September) after a drop of one.5 for every cent in 2019/20 due to the Covid-19 pandemic, which will partially offset an expected production improve, Rabobank explained on Wednesday.
In its quarterly report on the international sugar marketplace, the Dutch lender revised its watch for the sugar supply harmony in 2019/20 from a deficit of four.3 million tonnes to a deficit of one million tonnes, due to bigger production in Brazil and reduced demand from customers.
It sees the harmony shifting to a smaller surplus of two,00,000 tonnes in 2020/21, as India is expected to improve production to 33.5 million tonnes, up sixteen for every cent from 2019/20.
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Rabobank, which specialises in the agricultural sector, retained its watch for Brazil’s Centre-South output at 36.four million tonnes, though projecting production in Thailand at 7.eight million tonnes, a 10 for every cent minimize from 2019/20.
“Revisions that have decreased our 2019/20 deficit and made a smaller 2020/21 international sugar surplus level to a properly-provided marketplace in the coming twelve months,” the lender explained.
“In change, this suggests that uncooked sugar charges will keep on trading in a USc eleven/lb to USc 13/lb array – constrained to the downside by Brazil’s ethanol parity and to the upside by India’s export parity,” it explained.