Production of sugar is set to slide this year for the first time since 2008 despite consumption of the sweetener growing to record levels, according to Bloomberg.
A worldwide glut that has kept prices on a bearish trend since September of last year will be impacted by the reduction, according to the International Sugar Organization of London. The median estimate of 13 analysts and traders polled by the news service noted sugar futures will climb as high as 13 percent by March of next year, topping at 18.5 cents per pound.
"The surplus is not going to last forever," analyst Abah Ofon with Standard Chartered Plc of Singapore told the publication on Tuesday. "There's less incentive to increase production. We'll see a drop in supply."
At 9:20 a.m. on Tuesday, sugar futures rose 0.43 percent, a 0.0007-cent gain to 0.1647 cents per pound.
Investing.com reports the soft commodity is coming off its top price in three weeks on Monday, prompted higher by the likelihood of damage to crops in Brazil. The South American nation is the globe's top producer of the sweetener.
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