LONDON, Nov. 20 (Reuters) — The world sugar deficit will narrow to 3.03 million tons in 2005/06 from 3.94 million in 2004/05, London-based trade house Czarnikow said on Friday.
The firm had initially forecast in August a 2005/06 deficit of 2.24 million tonnes.
Czarnikow said in its latest market review that it had cut its prediction for output in Brazil and in the Americas generally due to bad weather, including the hurricanes that lashed the United States and Central America this year.
"The severity of the fall in US production means that, for the first time in many years, the domestic balance in the United States will influence the global market," it said.
A large drawdown in stocks was still expected in 2005/06.
"We are currently forecasting global production in 2005/06 at 148.79 million tons. Global consumption for 2006 is currently forecast at 150.81 million tons," it added.
In Brazil, sugar stocks were expected to fall in the off-crop period in the centre-south due to wet weather, while dry weather had hampered the early stages of cane development in the northeast.
"In total we are now projecting Brazilian production at 28.59 million tonnes, a fall of 1.36 million compared with our August estimate."
