Global sugar surplus risks upward revision on Asian supply

SINGAPORE/LONDON:The global sugar surplus in the next crop year,which starts on Tuesday,may have to be revised upwards after favourable rain across much of Asia augured for better-than-expected output in several key producing countries.

Upward revisions in 2013/14 supply forecasts from the Asian producers would send a bearish message to the global sugar market, which is now trading near 4-1/2-month highs,boosted by chart-based buying and concerns over rains in top grower Brazil.The International Sugar Organization (ISO) and analysts such as Datagro,Kingsman and Czarnikow which in recent weeks have cut their surplus forecasts sharply,may have to revise up their numbers as output is set to exceed earlier expectations in producers such as India,Thailand,the Philippines and Pakistan.