Poor crops in Asia due to adverse weather conditions look set to trigger further upward revisions to the size of the expected global sugar deficit in seven years, which is expected to be the largest in the 2015/2016 season, say analysts. As we have previously noted, Indian mills have scaled back expectations of sugar output due to drought; India is the world's number two producer after Brazil, and the top consumer. This means the market is now more reliant on Brazil for supplies, hoping that the South American nation will be able to increase production to compensate for poor yields in India and Thailand.
Poor crops in Asia due to adverse weather conditions look set to trigger further upward revisions to the size of the expected global sugar deficit in the 2015/2016 season, which is expected to be the largest in seven years, say analysts. As we have previously noted, Indian mills have scaled back expectations of sugar output due to drought; India is the world's number two producer after Brazil, and the top consumer. This means the market is now more reliant on Brazil for supplies, hoping that the South American nation will be able to increase production to compensate for poor yields in India and Thailand.