Rabobank sees 5.4 million tonne sugar surplus

Rabobank in its third quarter sugar report estimates the global sugar surplus for 2013/14 at 5.4 million tonnes.

The surplus is not only the fourth consecutive surplus but also with rising stocks and an increasing stocks to consumption ratio.

Bad weather in Brazil could lead to a downward revision of Center South production and a possible increase in prices. Heavy rainfall in Russia could have a similar impact on the beet crop and also see a lift in prices.

Otherwise and in the absence of new information prices are expected to see upward resistance.

Advertisements

One response to “Rabobank sees 5.4 million tonne sugar surplus

  1. Miguel Figueroa

    One of the big factors keeping this market up is the spec and huge fund buying and now they carry a long which is near their neck-line.The so- called “hedge” funds have the biggest longs from latest non-official estimates and altogether they seem to have a good hold
    of ther market.

    of the NY raw futures with such higher than 45% of the the open interest in NY./ICE.(Who can tell us?).
    Sooner or later the fundamentals will take over and reflect lower prices than the current ones in the NYBOT /ICE unless the funds decide to exit their longs before

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s