China sugar production to fall below 10mln T: Green Pool

Green Pool put the crop at 9.95mln tonnes

  
A combine harvester cuts sugar cane in a field on the property of Grupo Moreno in Ribeirao Preto, northeastern region of the state of Sao Paulo, Brazil, September 15, 2016. Image used for illustrative purpose.

A combine harvester cuts sugar cane in a field on the property of Grupo Moreno in Ribeirao Preto, northeastern region of the state of Sao Paulo, Brazil, September 15, 2016. Image used for illustrative purpose.

REUTERS/Nacho Doce

LONDON- Analysts Green Pool on Friday cut its forecast for China's sugar production in 2021/22 to below 10 million tonnes and added there was further downside potential with the La Nina weather event leading to an elevated risk of frost.

Green Pool put the crop at 9.95 million tonnes, down from a previous projection of 10.16 million and the prior season's 10.67 million.

The drop in production from last season has mainly been driven by a 42% decline in beet sugar to 887,000 tonnes with cane sugar output seen falling by only 1% to 9.07 million.

"The beet campaign is nearly complete and harvest progress suggests an even sharper decline than previously. We have trimmed both Inner Mongolia and Xinjiang's production," the analyst said in a China crop update.

Green Pool said it was also continuing to flag the downside risk for the cane crop.

"The main risk now is any further frost event and the weather impact on sugar yield," the report said, adding there was potential for production to fall to between 9.50 million and 9.90 million tonnes.

(Reporting by Nigel Hunt and Dominique Patton; editing by Jason Neely) ((nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net))


More From Commodities