Global sugar markets are pulling out of the surplus phase they have been mired in and a deficit phase is on the horizon according to the International Sugar Organization. (ISO) The ISO forecasts that production and consumption will be balanced next season as output from top producer, Brazil will be curtailed by drought and by mills facing financial difficulties. The number of operating mills in Brazil is declining and many of the larger mills are reporting higher debt but the government does not appear to be willing to be of assistance. Brazil is forecasted to have a decline in production of 900,000 tons to 33.4 million tons next season as world demand continues to climb by 2.2%. The ISO predicts that a deficit phase for the sector will begin to develop in 2015/16 with a shortfall of 4 million tons. This would be the first sugar supply deficit since 2009/10.
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