Global sugar prices have dropped back as a result of an expected global surplus over the next 12 months, the Food and Agriculture Organisation (FAO) has said.
Sugar prices on the FAO food prices index dropped by 6% in November, versus the previous month, averaging 340 points, the FAO said today (8 December). The FAO index is down by 15% from the peak it reached in July.
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Expectations of a large global production surplus over the next 12 months, on the back of good harvests in India, the EU, Thailand and Russia, contributed to the easing in prices, the UN agency said.
However, industry analysts at Rabobank said this week that prices are not expected to fall sharply in 2012, despite the expectation that the global sugar surplus will increase.
