In a recently released report on the worldwide sugar market, the International Sugar Organization (ISO) has indicated a notable improvement, projecting a reduction in the global supply deficit in 2023-24 season. The deficit is now forecasted at 0.33 million metric tonnes (MMT), lower than the previous estimate of 2.11 MMT.
The ISO attributed this positive shift primarily to the substantial increase in sugar production in Brazil. The sugar body reported that Brazil’s sugar season in 2023 experienced favorable conditions, characterized by ample early-year rains fostering crop development and subsequently followed by helping dry weather for smooth harvest. In contrast, other regions, notably in Asia, encountered drier-than-normal weather conditions, resulting in a substantial reduction in sugar production.
Revising its outlook for global sugar production in the 2023-24 season, the ISO projected it to 179.88 MMT, up from the previous estimate of 174.84 MMT. Concurrently, the forecast for global sugar consumption was revised upward to 180.22 MMT, compared to 176.96 MMT projected in August.
Shifting focus to the ethanol sector, the ISO anticipates a decline in global production in 2024, with figures dropping to 113.7 billion liters from the 114.1 billion liters recorded in 2023.