Global Surplus Sugar 2011, Ukraine Sugar beet harvest 15 million Tons

Global surplus sugar for December 2011 will be 8.4 million tons, the most since 10.8 million tons in 2002-03. Ukraine?s sugar beet harvest is 15 million tons so far, according to the statistics office. Its sugar exports will be 217,000 tons for 2011-12 compared with 109,000 tons a year earlier, the USDA estimates.

Sugar fell heading for a fourth weekly decline, on signs new harvests will add to supplies. Raw sugar for March delivery dropped 1.6 percent to 24.99 cents a pound at 8:21 a.m. in New York on ICE Futures U.S., bringing the drop this week to 2.3 percent. Prices are down 22 percent this year.

White, or refined, sugar for March delivery fell 2.2 percent to $641.70 a metric ton on NYSE Liffe in London. Ukraine?s sugar beet harvest was almost 29 percent larger than last year as of Nov. 1, the state statistics office said today. Ukraine?s sugar exports will double in the 2011-12 season started Oct. 1, the U.S. Department of Agriculture estimates. Global sugar output will exceed demand by the most since 2002- 03, says Kingsman SA, a researcher in Lausanne, Switzerland.

International sugar market is likely to be well supplied in 2011-12 thanks to bumper beet and sugarcane crops in other producing countries? besides Brazil, Lysu Paez, an analyst at Natixis Commodity Markets Ltd. in Paris, said in a report e-mailed yesterday. ?These figures, combined with a potential slowdown in global sugar demand, may keep sugar price under pressure over the coming weeks.