World sugar prices are poised to recover some ground in the coming months but will still post sharp losses this year, as a larger than expected supply surplus weighs on the market, a Reuters survey of 10 analysts and traders showed on Thursday.
Sugar prices are seen recovering slightly from the three-year lows hit on Wednesday, but the market is still on course to post an overall steep decline for the year.
Spot raw sugar prices are expected to finish the quarter at 11.50 cents per lb and to end the year at 12 cents, up 14.5 percent from Wednesday's close but still down nearly 21 percent on the year, according to the median estimate of responses.
White sugar futures are seen ending the quarter at $326 a tonne and ending 2018 at $330, up about 5 percent from Wednesday's close but down roughly 16 percent year-on-year.
Benchmark prices have been under persistent pressure this year due to an expected surge in output in producers such as India, Thailand and the European Union.
The world sugar balance sheet is set for a surplus of 10.8 million tonnes in the current 2017/18 season, according to the respondents. This is higher than the 8.2 million tonne surplus forecast.
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