Brussels has rejected beet growers' demands to allow more of Europe's sugar surplus onto the global market, saying the world had enough stocks to meet demand, as prices set a record for a fourth successive day.

The European Commission said it did "not see any other possibility" than to stand by a pledge to the World Trade Organisation to limit the region's exports to 1.374m tonnes.

While acknowledging that Europe would produce a "significant surplus" of sugar in 2009-10, when the world faces a shortfall analysts have pegged at 7m-13.5m tonnes, "existing stocks worldwide are sufficient to cover this [global] gap", a commission spokesman told Agrimoney.com.

"Trade analysts expect a more balanced situation for 2010-11, and even a minor surplus seems possible at this stage," he added.

Furthermore, while global prices for white sugar were, at about E405-440 a tonne, above European reference price, they were "well below" the actual market price.

European prices averaged E550-560 in the July-September quarter, according to commission data.

'Ridiculous' stance

The comments follow a call from beet farmers to allow traders to breach export curbs and allow a surplus potential estimated at up to 1m tonnes onto the world market.

In the UK, National Farmers Union sugar spokesman William Martin branded the commission's stance as "ridiculous", saying it was "time for the EU to play its part in ensuring the smooth operation of global food markets".

Europe has enjoyed record beet yields in many countries, help production rise 14%, according to estimates from US staff, who predict a 46% jump in the region's sugar inventories.

Record high 

The spat co-incided with fresh rises in sugar prices, with Euronext Liffe white sugar for March rising 2.2% to $680.70 a tonne, the highest for a spot contract since the commodity began trading in London in 1983.

New York sugar for January gained 2.9% to 26.11 cents a pound, the best for the spot contract since February 1981.

The better-traded March lot added 2.7% to 26.09 cents a pound, also a 28-year high for a second-in contract.

The particular improvement in near-term contracts looked a sign of "greater concern" at producers' hedging reaction to the rain-dented harvest in top producer Brazil, David Sadler, at Sucden Financial, said.

However, he added that some technical indicators "have moved back into the over bought territory"

"There may be a probability of seeing a technical correction particularly if the dollar continues to improve," he said.