Global sugar prices rise despite recent predictions of low ceiling

Global sugar prices rose in stock markets yesterday, despite recent industry predictions that the commodity would be kept at a low ceiling until late 2013, at the least, due to a surprisingly strong oversupply from Brazil.

The International Sugar Organisation had raised its oversupply forecast for 2012-13 to 8.53m tonnes, an increase of more than 2.3m tonnes, largely due to the boost in Brazilian output.

“A higher crop in Brazil has boosted the surplus further,” the organisation said, lifting by 2.2m tonnes, to 40.3m tonnes, its estimate for sugar output in the top producing country.