ISO projects a global sugar deficit of 200,000 tons in the 2026/27 crop year.

THE International Sugar Organization (ISO) The ISO projects a global sugar deficit of 200,000 tons in the 2026/27 crop year, according to the first detailed estimate for the season, released this Tuesday (1st). In its quarterly update, the entity indicated that production outside Brazil should decrease by about 4.4 million tons, mainly pressured by expected declines in the European Union, Thailand and Central America. Part of this reduction, however, should be offset by Brazil. According to the ISO, the recent appreciation of sugar futures contracts has made the production of the commodity more attractive than that of ethanol, favoring a greater allocation of sugarcane to sugar production in the Brazilian 2027 crop year. "This is offset by the expectation of a greater allocation of sugarcane for sugar production in Brazil in the 2027 crop year, after the recent rise in sugar futures prices, which made the product much more attractive than ethanol," said the entity. On the demand side, the ISO projects growth of 0.5% in world sugar consumption in 2026/27. For the 2025/26 global crop season, the organization has halved its estimate of the production surplus. ISO now projects a surplus of 1.1 million tons, compared to the 2.2 million tons estimated in May. The projection of DATAGRO The forecast is for a deficit of 1.62 million tons for the 2026/27 cycle, while the consultancy expects a surplus of 1.91 million tons for the 2025/26 season. For more details, access the [link/reference]. analysis section of DATAGRO Portal.

This text was translated by machine from Brazilian Portuguese.