World sugar market: Sugar - not a scarce commodity

摘要

Following the sharp rise in sugar production from 159.0 mn t, raw value, in 2009/10 (October/September) to 183.8 mn t in 2012/13 following the price boom from 2010 to 2012, global world sugar prices have come under extreme pressure and are now below the cost of production even in cost-efficient countries. However, the supply response to the fall in prices was muted as many producers are shielded from the vagaries of global prices and the weakness of local currencies vis-a-vis the US dollar, which offset at least part of the price decline. Also, weather conditions proved to be favourable, so far, with most analysts expecting yet another surplus in 2013/14 to which we will come later on.