Bank lowers price ideas
Commerzbank has cut its forecast for New York raw sugar futures for the July-September period by 1 cent per pound, and reduced its expectations for the following two quarters, Agrimoney reports.
While acknowledging the decreasing estimates for output in Center South Brazil, where the cane crop has been damaged by drought, it highlighted improved expectations for Thailand, where officials peg 2014-2015 sugar output at 12 million mt.
Even if world production for 2014-15 falls 2 million to 3 million mt short of consumption, as forecast by many observers, high stocks from surpluses in previous seasons should continue to prevent major price jumps, the bank said.