By Commodity Online
The International Sugar Organisation has increased its forecast for the global surplus in 2011/12 to 5.17 million metric tonnes in its latest quarterly market outlook, compared with its projection of 4.46 million tonnes made in November .
The ISO now estimates total world production at a record 173 million tones with beet sugar production expected to account for most of the increase - with growth of more than 6.1 million tonnes on the year. Cane is likely to demonstrate a more modest 1.9 million tonne increase, despite a significant decrease in sugar output from Brazil.
The ISO expects global consumption to reach 167.83 million tonnes, with "healthy" 2.32% growth on the year, compared to 0.34% in 2010/11 and 0.93% in 2009/10.
Upward revisions for production mean that stock rebuilding should accelerate in the second half of the season with the stocks to consumption ratio rising to about 37% which is likely to put bearish pressure to world prices.
