NEW YORK, (Reuters) – The global sugar supply balance will be affected by a higher sugarcane production in India and lower sugarcane production in Brazil in the 2021/22 season. This was reported Tuesday by StoneX.

StoneX stated that demand will surpass production in the coming season for the third straight year.

The global production stood at 186.6 millions tonnes and the demand at 188.4million. According to the broker, demand has increased as ocean freight costs have fallen. The broker noted that there was more buying in Asia and at refining centers.

India’s sugarcane production is at an all-time high after positive weather. However, the country’s ethanol blend program will remove the equivalent of 3,000,000 tonnes of sugar from the market. StoneX stated that this will result in sugar production roughly the same as the previous crop of around 31 million tonnes.

Brazil’s center-south area has 31.3million tonnes of production, which is about 12% more than one year ago.

StoneX reported that Brazil’s brand new sugar season will bring 6% more sugarcane production to 565 million tonnes.

The European Union and the United Kingdom are expected to increase sugar production by nearly 12% between 2021/22 and 17.2 Million tonnes in October-Sept 2012. This is due to a warmer summer in Europe, which boosted beet yields.