The globe's second-largest importer of sugar is poised to conduct its second-largest harvest of the crop as a result of good weather prompting farmers to enhance their planting, according to Bloomberg.
China's production of the sweetener is forecast to increase 19 percent to 13.7 million metric tons for season beginning October, the median estimate of nine analysts and traders interviewed by Bloomberg indicates. This season's production amounted to 11.5 million tons, the China Sugar Association indicated.
"The record-high prices last year fueled an expansion in acreage in China," general manager Cheng Bo with the sugar department at PKU Founder Commodities Group in Beijing told the news source, also pointing to the nation's top grower of sugarcane. "The crops in Guangxi will have good sugar content amid favorable weather."
At 2 p.m. on Wednesday, sugar futures fell 2.28 percent, a 0.0046 cent loss to 19.69 cents per pound.
Reuters reports losses to the sweetener on Wednesday were part of its biggest two-day drop in 90 days. Investors were focusing their attention on the strong supplies as well as the Brazilian harvest, which is projected to be strong as well.
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