The sugar crop in Europe is forecast to be enormous in size as output will climb in European Union nations and the Ukraine while production doubles in Russia, according to a Germany-based researcher.
Bloomberg reports the crop in Europe will total 30 million metric tons for season starting October 1, the top production since the harvest from 2005-2006, according to F.O. Licht GmbH. News about the high production arrives as this year's harvest notched the lowest level in at least 30 years.
"Europe seems headed for a giant sugar crop in 2011-12 … The continent will therefore cut its net sugar imports sharply in the upcoming season," states a report from F.O. Licht. "The rise in EU output will be exclusively in the balance of out-of-quota sugar that must not be sold to food and beverage producers."
At 10:22 a.m. on Thursday, sugar futures slipped 0.98 percent, a 0.0029 cent slip to 29.39 cents per pound.
Production in European Union nations is likely to gain 2.4 million tons to 17.4 million tons, the researcher noted.
Reuters reports Brazilian production of the sweetener is projected to fall while demand for it will climb from China.
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