World Sugar Production to Be Higher Than Estimated on Brazil, Licht Says

F.O. Licht raised its forecast for world sugar production for the 2009-10 season by 0.7 percent on higher output from Brazil and India.

Global output will be 155 million metric tons for the year through September, up from a February prediction of 153.9 million tons, Ratzeburg, Germany-based F.O. Licht said in a statement today. The research company expects demand to rise next year, and didn’t provide any forecast.

“There are indications that Brazilian output will rise significantly in 2010/11,” while improved weather and better crop care can be expected to result in a “sizeable rise” in Indian output, Licht said.

The sugar market can be expected to swing back into a surplus in 2010-11, according to the report, which added that the surplus won’t be “burdensome” given that demand worldwide has stayed strong throughout the global economic crisis since 2008.

To contact the reporter on this story: M. Shankar in London at mshankar@bloomberg.net

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