Total world raw sugar production for 2000/01 is estimated
at 124 million tons down 7 percent from the previous
year’s record level. Ending stocks for the coming
year are forecast at 30.9 million tons down 11 percent
from last year’s very large 34.7 million tons. Total
supply for 2000/01 is estimated at 193 million tons, down
4.2 million tons from last year. The principal reason for
this situation is the downturn in Brazilian production
and exportable surplus. These reduced supplies and a
steady demand have strengthened the New York No. 11
futures contract price during the last few months.
Whether prices will remain firm depends on the strength
of import demand in certain countries such as Pakistan,
Russia, Egypt, and Indonesia and on the prospects of
Brazil’s ability to recover from this year’s
drought-reduced crop.
