World’s Top Sugar Trader Sees Sixth Year of Shortages Ahead

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World’s Top Sugar Trader Sees Sixth Year of Shortages Ahead
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The world’s largest sugar trader expects a sixth straight year of deficits in the coming season as a poor outlook for India’s crops is set to drive down global stockpiles of the sweetener.

“The world will be as close to running out of sugar as it can be,” said Mauro Virgino, trading intelligence lead at Alvean, a trading house controlled by Brazilian producer Copersucar SA.

Alvean also expects difficulties in Thailand, another key exporter, as higher profits from growing cassava continue to drive farmers away from sugar cane. The tightness in supplies is set to shrink inventories even further, according to Virgino, bringing a measure of stockpiles-to-consumption down to levels similar to 2011. At that time, raw sugar futures surged to a three-decade high.

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