Sugar prices and commodity-related exchange traded notes sweetened Tuesday after the International Sugar Organization surprised markets with a worsening supply outlook.

On Tuesday, the iPath Bloomberg Sugar Subindex Total Return ETN (NYSEArca: SGG) gained 8.0% and the Tecrium Sugar Fund (NYSEArca: CANE) rose 5.2%. Both SGG and CANE also shot above their long-term, 200-day simple moving average.

ICE sugar futures were 8.9% higher to $0.139 per pound on Tuesday.

Sugar futures jumped after the International Sugar Organization calculated that world production in the 2015 to 2016 period would fall short of production by 5.02 million metric tons, compared to previous estimates for a 3.5 million deficit, Bloomberg reports.

“A statistical deficit is clearly supportive for world prices,” the ISO said. Prices “can be expected to trend generally higher in the remaining months of 2015/16.”

ISO’s worst-than-expected projections comes a week after INTL FCStone anticipated a global supply deficit of 7 million tons.

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