Global sugar prices likely to rise this year as world sugar balance was seen switching to a deficit of 1.90 million tonnes in 2019/20 compared with a surplus of 2.55 million in 2018/19, according to a survey by Reuters.
Raw sugar prices were expected to end the year at 14.60 cents per lb, up 15% from Friday's close, according to the median forecast of responses.
The shift was partly driven by a forecast fall in India's production to 29.50 million tonnes in 2019/20 from 32.00 million in 2018/19, according to the poll.
Depressed sugar prices have led Brazilian companies to increase their capacity to produce ethanol, with many mills able to switch between using cane to produce either sugar or biofuel ethanol depending on which is more profitable.
White sugar prices were expected to end the year at $391.50 per tonne, up 17 percent from Friday's close.