New York: Commodities trader Louis Dreyfus stated on Tuesday that the global sugar market is expected to have a small surplus in 2024-25, amounting to 800,000 metric tons compared to 2.5 million tons in the previous year. The outlook for Brazil remains uncertain, reported Reuters.
Louis Dreyfus’ head of sugar, Enrico Biancheri, mentioned during a presentation at New York Sugar Week that higher production in Thailand and Europe, driven by increased planting of cane and beet, will partially offset the decrease in output in India if the Indian government continues its ethanol program as planned.
According to Dreyfus’s estimates, Thailand is expected to produce an additional 1.6 million tons in 2024/25, totalling 10.5 million tons, while Europe and the United Kingdom are projected to increase production by 800,000 tons to reach 17 million tons.
Biancheri noted that there has been an increase in planting in various parts of the world, contributing 2.5 million tons to global sugar production. He explained that in some regions, such as Brazil, sugar cane cultivation expanded at the expense of grains or ranching, while in Thailand, it replaced former cassava fields.
