OREANDA-NEWS. February 09, 2010. According to the Bloomberg Agency data, the world sugar deficit forecasted for 2010 was increased by 43% to 12mnt. The main reasons for the forecast revision was the bad weather conditions in Mexico, China and Thailand, and the recent sugar imports growth posted by the largest sugar importers, such as India and Pakistan, in 2010. The Agency forecasts the world sugar output of 151mnt in 2010, and thе world sugar consumption of 163mnt in 2010.

Millennium Capital believes that this news will maintain both world and domestic sugar prices at the high level in 1H10. This is to increase the operational profits of such domestic sugar suppliers as Astarta and Ukrros in 2010. Millennium Capital are also of the opinion that the current government inquiry into a potential legal violations involved in the domestic sugar price growth will not constrain the domestic sugar price increase, at least not in 1H10.