Sugar Production May Result in a Second Surplus Next Season, Olam Says

Bloomberg
By Isis Almeida - Feb 4, 2012 6:01 PM CT .

Sugar production may outpace demand by as much as 8 million metric tons next season, a second consecutive surplus that could help send prices down further, according to commodities trader Olam International Ltd.

Output will be 6 million to 8 million tons higher than consumption in the 2012-13 season starting in October, Piero Carello, general manager of the Singapore-based company’s sugar division in Europe, and John Stansfield, a senior analyst, said in an interview in Dubai yesterday before an annual sugar conference organized by Kingsman SA. That compares with a 9 million-ton surplus in 2011-12, they said.

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