Sugar Drops to Four Year Low on Global Surplus

Raw-sugar prices fell to the lowest in more than four years amid signs of an expanding global surplus as output accelerated in Brazil, the largest supplier.

Brazil’s Center-South, the biggest growing region, produced 20.9 million metric tons in the 12 months through August, up 4.4 percent from a year earlier, industry association Unica said yesterday in a report.

Prices have slumped 12 percent this year as world output is set to exceed demand for a fifth straight year, helping curb food costs. The surplus will be 1.3 million tons in the year that starts Oct. 1, the International Sugar Organization said Aug. 26. The first deliveries since 2012 from Thailand and improving crop conditions in India, the second-biggest producer, add to outlook for increased supply.

Bloomberg

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