A surplus of the sweetener is slated to push beyond demand by 7.7 million metric tons for this season, an upward drive of 1.6 million tons as compared to figures from a previous forecast, the Czarnikow Group stated, also noting the surplus of sugar will manifest in the middle of this year.
"The fact that the market will be in a large surplus this year will likely reduce the chance of a strong upside move setting in any time soon," states a monthly report penned by broker INTL FCStone, according to Bloomberg.
At 10:28 a.m. on Tuesday, sugar futures fell 2.63 percent, a 0.65 cent slide to 24.03 cents per pound.
The Brazilian government and sugar industry is working on enhancing sugar mills' financial situations while also driving up yields, according to commodities-now.com. But the production of sugar in India is slated to increase, the publication states.
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