Sugar prices drop back, crop pressure eases - FAO
Baku, September 19 (AZERTAC). Sugar prices have dropped back slightly thanks to better-than-expected production prospects for Europe, India and Thailand, but prices remain significantly above 2010 levels, the Food and Agriculture Organisation (FAO) has said.
Sugar prices on the FAO index dropped by 2% between July and August, the FAO said late last week. However, prices remain 50% above those in August 2010, it said.
Positive production prospects for Europe, India and Thailand contributed to the easing in prices, the FAO said. However, there is the risk of further global price rises on sugar amid forecasts that production in Brazil will be below 2010 levels.
"The production from Brazil is likely to be lower than last year and the evidence is building stronger and stronger every time we look at the numbers," FAO analyst Elmamoun Amrouk told just-drinks. "It looks likely that the production from Brazil will be down, but we are very positive as far as supply coming out from other regions."
Amrouk added: "There is pressure but only for the short-term right now. Eventually when the Russian and European production starts coming into the market then we should see some easing. It is very difficult to predict when, but probably by the end of the year."
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