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Sugar Shortage Seen Looming by Drake Amid Drought in Brazil

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The world sugar market is heading for its first deficit in five years as drought cuts supplies in Brazil, the top producer and exporter, RCMA Group Pte said.

The country’s cane harvest may decline about 10 percent in the year starting April 1, said Jonathan Drake, chief operating officer of the Singapore-based trading company. Sugar output may drop as much as 3.5 million tons next year as more cane is used for ethanol, he said in an interview on Oct. 3.