Czarnikow raises global sugar deficit forecast-UPDATE 1

* Cuts global sugar output forecast

* Sees slowdown in consumption growth

(Adds details)

LONDON, March 1 (Reuters) - Czarnikow on Tuesday revised up its forecast for the 2010/11 global sugar deficit to 3.7 million tonnes from its previous forecast of a deficit of 2.8 million tonnes due to adverse weather in key producing countries.

The London-based trade house reduced its global production forecast to 165.6 million tonnes, down 2.8 million tonnes from its previous forecast.

Czarnikow said there would be a third consecutive year of stock drawdowns in the global sugar market.

"The 2010/11 balance was swung further into deficit as early hopes of a return to surplus proved too optimistic," the trade house said in a statement.

"With the Northern Hemisphere beet harvest reaching a disappointing end and with Southern Hemisphere cane harvests also falling short of initial hopes, it has become apparent that many producers have suffered from this year's weather."

With sugar prices at near 30-year highs, consumption is expected to continue to rise to 168.7 million tonnes in 2011, though this figure is down from previous estimates, Czarnikow said.

"These aggregate revisions result in the lowest average growth in sugar consumption over a three-year period since the collapse of the Soviet Union in the late 1980s."

(Source: http://www.forexyard.com/en/news/Czarnikow-raises-global-sugar-deficit-forecast-2011-03-01T164016Z-UPDATE-1)