Brazil's problematic sugar harvest will leave it unable to meet global demand for the commodity, giving new life to the rally in prices, Czarnikow has said.

Import demand for raw sugar could top 8m tonnes in the fourth quarter – up two-thirds on the 4.8m tonnes in the January-to-Match period.

Yet Brazil, the world's biggest producer, was likely to have more than 7m tonnes in available supplies thanks to wet weather which hurt the harvest and depressed sugar levels in cane.

Cazrnikow cut by 1m tonnes to 28.2m tonnes its forecast for output from Brazil's main sugar region, Centre South.

'Not enough sugar'

"It is becoming increasingly clear that Brazil is not going to be able to support… demand during the off-crop period, even though the industry has clearly tried to maximise sugar production," the London-based broker said.

Cazrnikow's director of research, Toby Cohen, said: "There simply will not be enough sugar to meet ongoing levels of demand.

"Limits on supply require a forced adjustment of consumption. To this end it is clear that prices will need to move higher to ration demand."

Shortfall in supply

Brazil would takeover from India as the focus of sugar market concerns.

India has, over the past year, turned from a net exporter of sugar to one with a 4m tonne-import need.

"Regardless of whether India buys or not, all importers are facing a shortfall in supply," Czarnikow said

London white sugar for December closed $2.30 higher at $603.20 a tonne.

New York raw sugar for March ended 0.26 cents higher at 24.17 cents a pound.