Australia’s official crop forecasting agency, Abares has cut its forecast for global sugar production by 2.8 million tons for 2014/15 to 179.9 million tons. The adjusted estimate reflects an expected decline in Brazilian sugar production of 1.7 million tons year on year for a harvest of 38 million tons because of drought conditions in the country’s Central South region. Abares also lowered its sugar output estimate for the world’s number two producer, Thailand. Production is seen falling by 700,000 tons to 10.9 million tons because of a 5% drop in cane planting in response to low global prices. Following the trend, China’s sugar output is forecast to drop 4% to 14 million tons as farmers switch to other crops for higher returns. In contrast Abares forecasts an increase in sugar production in the U.S. and Mexico and increased its estimate for domestic production in Australia by 57,000 tons to 4.6 million tons. Abares’ forecasts project world production above world consumption for 2014/15 leaving world stock at the end of the 2014/15 season at 80.5 million tons.
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