FO Licht sees world sugar ending stocks for 2007/08 at86.22 million metric tonnes raw value, up from the November estimate of 84.89million tonnes, according to Dow Jones. FO Licht sees world sugar ending stocks for 2007/08 at86.22 million metric tonnes raw value, up from the November estimate of 84.89million tonnes, according to Dow Jones. Stock levels have grown due to a high stocks to consumption ratio of 55.8%,compared with 43.8% in 2005/06, the firm said. However, world sugar production in 2007/08 is forecast slightly lower at168.87 million tonnes, compared with the November estimate of 169.19 million tonnes, the firm said. Looking ahead to the 2008/09 crop, FO Licht suggests early production estimates may have been too conservative. "If prices stay high ... many exporters may have second thoughts on reducing production while Brazilian millers may be tempted to channel more cane into sugar production at the expense of ethanol, swamping the market with unexpected supplies," it said.
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