NEW YORK, May 9 (Reuters) - Louis Dreyfus Co BV is projecting a sharp drop in the world sugar supply surplus in 2018/19, the commodities firm’s Head of International Sugar Trading said at an industry event on Wednesday, issuing a view contrary to many market forecasts.
Louis Dreyfus sees a global sugar surplus of under 2 million tonnes, down from over 11 million in the current 2017/18 crop year, said Enrico Biancheri. That comes on expectations that India won’t increase from the huge output this year that caught the global sugar trade by surprise.
Biancheri’s statements run contrary to many in the market that project excess supplies could be above 7-8 million tonnes for next year, due to record output in India, the world’s second-largest producer after Brazil, and Thailand.
Still, high stock levels will keep prices under pressure, Biancheri said. (Reporting by Chris Prentice Editing by Chizu Nomiyama)