Sugar will probably face the first shortfall in years, the main reason is Brazil, which accounted for 28% of global output last year and 57% of exports, which is facing the driest summer in at least 7 decades in the Center South region, damaging the crop and leaving the global sugar output in deficit.
The forecast is that the global sugar output will be 900,000 metric tons below demand in the 12 months ending Sept. 30.
This shortfall could be worst as more cane is used to make ethanol, which is offering better returns due the growing domestic demand for fuel in Brazil.
However the global demand of Sugar will reach a record 167.6 million tons in the year ending Sept. 30, extending two decades of increases that saw consumption surge 48%, according USDA.
The price of raw sugar has advanced 13% since the end of January.