Brazil
Exports of Sugars and Molasses Totaled 2.22M MT in December 2022 (Jan 2)
Brazil exported 2.223M MT of sugar in December (22 working days), with accumulated revenue of USD 949.63M, according to the Foreign Trade Secretariat (Secex), of the Ministry of Economy. In W52, more than 280K MT were shipped. In the whole of December, Brazil exported 4.07M MT of products related to the sector. In the entire month of December 2021 (23 business days), product exports totaled 1.94M MT giving revenue of USD 729.45 million. In the analyzes of tons per daily average, sugar and molasses exports totaled 101.05K MT/day in the period, more than 19% higher than in December 2021 (84.50K MT/day). Shipment prices were almost 13% higher at USD 427.20/MT. In the whole of 2022, Brazil exported 27.82M MT of sugar and molasses, around 2% more than in the previous year with revenue of USD 11.55B.
In Brazil Sugar Starts First Session of 2023 With Losses on New York and London Stock Exchanges (Jan 3)
Sugar future contracts operated with losses on the New York and London stock exchanges in January 3, the first session of 2023. The market followed oil, in addition to following the positive harvest information at the origins. At around 8:28 am (Brasília time), raw sugar had devalued by 0.70% in the main contract on the New York Stock Exchange (ICE Futures US), at USD 438.72/MT (19.90 cents/lb). At the London terminal, the drop was 1.23%, at USD 547.60/MT.
Sugar Production in the Center-South of Brazil Is Expected to Grow in 2023/24 (Jan 3)
The 2023/24 season that starts in April in the Center-South of Brazil may register an increase in sugarcane production, due to higher productivity. Estimates indicate that the Center-South can produce from 560 to 595M MT of sugarcane, against 538.98M MT in the current 2022/23 season (data up to December 16), according to data from Unica. As for the production mix, there is still no final position for the plants, but among the main factors that should lead to this decision are the direction of the current federal government and the price policy to be adopted by Petrobras, which can define competitiveness relative to ethanol and gasoline.
Sugar Starts the Year Low in Brazil (Jan 3)
Sugar started 2023 at a low according to the Cepea/Esalq Indicator, from USP. In January 2, the mills sold crystal sugar at USD 25.98/50kg bag (R$ 136.51), against USD 26.01/50kg bag (R$ 136.69) in December 29, a devaluation of 0.13%. In December, the indicator accumulated a small positive variation of 0.29%. The London and New York stock exchanges (ICE Futures Europe and ICE Futures, respectively) did not operate in January 2 due to the New Year holiday.
Probable Mix of Larger Cane for Sugar in Brazil Drops Commodity Prices in the World (Jan 5)
A likely larger share of the sugarcane harvest for sugar production, to the detriment of ethanol, in the world's largest producer, Brazil, kept the sweetener markets low on international exchanges in January 4. The analysis was made by Reuters based on commodity market operators. According to these traders, changes in Brazilian fuel policy under the new president, Luiz Inacio Lula da Silva, are likely to favor the use of cane to produce sugar over ethanol. Another factor that pressured the market was the increase in sugar production in India, which has left the market on the defensive. In New York in January 4, there was a low on all ICE Futures screens for raw sugar.
Sugar Falls More Than 1% In New York and London January 5 With Information in Brazil (Jan 5)
Sugar futures prices fell more than 1% on the New York and London stock exchanges in January 5, despite having fluctuated upwards during the day. The market was pressured by expectations with harvests at the origins, in addition to the fuel issue in Brazil. The most traded month of raw sugar on the New York Stock Exchange fell 1.02% on the day, quoted at USD 426.37/MT (19.34 cents/lb), with a high of USD 432.77/MT (19.63 cents/lb) and a low of USD 425.93/MT (19.32 cents/lb). In London, the first contract had losses of 1.55%, at USD 534.70/MT.
Sugar Fell 3.75% In W1 in New York After the US Government Extends Its Fuel Taxes (Jan 6)
Sugar futures contracts closed the session January 6 with a significant drop in the New York and London stock exchanges, contributing to weekly losses. The pressure accompanies the scenario of fuels in Brazil, in addition to the harvest at the origins. The most traded month of raw sugar on the New York Stock Exchange fell 1.96% on the day, quoted at USD 418.00/MT (18.96) cents/lb, with a high of USD 427.26/MT (19.38 cents/lb) and a low of USD 417.56/MT (18.94 cents/lb). In London, the first contract had losses of 1.40%, at USD 527.20/MT.
India
AISTA Pegs India’s 2022/23 Sugar Production Lower by 3.6% (Jan 6)
Private trade body All India Sugar Traders Association (AISTA) has pegged India's 2022/23 sugar production at 34.5M MT, down by 3.63% over previous years production of 35.8M MT in its first sugar production estimate for the season. According to AISTA, the sugar production of Maharashtra in the ongoing 2022/23 season will be 12.4M MT against 13.7M MT in the previous year. Sugar production of second largest producer Uttar Pradesh has been pegged at 10.5M MT against 10.2M MT in the previous year.
Thailand
Tridge Analysis: High Demand for Thai Sugar May Result in Shortages Despite Increased Production (Jan 4)
Thai sugar during Q1 of 2023 is anticipated to have a tight supply amid delays caused by rainfalls, uncertainty about India’s export policies, and higher demand from importing markets. Good rainfalls resulted in a rebound in Thai sugar exports in MY 2022/23. However, Thailand's ongoing wet weather has its downside. Ten mills in central Thailand have postponed their crushing until early January 2023 due to persistent rainfall. Additionally, Indian sugar production forecasts have driven the demand for Thai sugar to fill the supply gap in the global market. Indonesia, one of Thailand's most important sugar trading partners, will likely boost sugar imports leading up to Ramadan month, which will begin in late March 2023. (Continue Reading)
Mexico
Mexico Is Strengthened in Research and Transfer in the Sugarcane Agroindustry (Jan 4)
Authorities, industry and sugarcane producers installed the Sugarcane Scientific and Technological Research Center, which will optimize production costs and increase the sustainable productivity and competitiveness of this agroindustry. For this 2023, the contributions derived from the agreement between sugarcane growers and industrialists and the resources provided by the Ministry of Agriculture and Rural Development, will strengthen the activities of the Sugarcane Genetic Improvement Program and the renovation of the sugarcane field.
Turkey
Turkey, Which Has 33 Sugar Factories, Imported 550K MT of Sugar (Jan 6)
According to the news of Sadettin Inan from Milli Gazete, Turkey started to import sugar after 24 years due to the wrong privatization policy and wrong sugar sales policy, while importing sugar despite 33 sugar factories revealed that the AKP's agricultural policy had completely collapsed. According to TUIK Foreign Trade data, Turkey imported a total of 552K MT of sugar in the 11 months of 2022. Turkey's sugar imports within the scope of DIR vary between 150K and 200K MT on average over the years, while it is thought that 350K MT of the 552K MT of sugar imported in the 11 months of 2022 were put on the market.
Russia
Sugar Beet Crops in Russia Will Increase, According to IKAR (Jan 7)
In 2023, sugar beet crops will increase, Evgeny Ivanov, a leading expert at the Institute for Agricultural Market Studies (IKAR), predicts. “The economy of grain and oilseeds has sank significantly, including due to state regulation of these industries. Of course, the profitability of sugar beet production has also decreased somewhat due to increased costs, but to a lesser extent,” he told Agroinvestor. However, greatly increasing the area under sugar beet (by more than 7-8%) is also not a good solution. Comfortably, Russia will be able to export about 600K MT of sugar, domestic consumption is about 5.8M MT. “If sugar production exceeds 6.8M MT, then the need for large exports will put a lot of pressure on prices,” Ivanov warns.
United Kingdom
Sugar Dropped More Than 1% In New York and London Stock Exchanges (Jan 3)
Sugar futures contracts ended in January 3 with a drop of more than 1% on the New York and London stock exchanges. The sweetener market felt strong financial pressure, in addition to information about Brazil and India in recent days. The most traded month of raw sugar on the New York Stock Exchange fell 1.70% on the day, quoted at USD 434.31/MT (19.70 cents/lb), with a high of USD 441.36/MT (20.02 cents/lb) and a low of USD 432.99/MT (19.64 cents/lb). In London, the first contract had losses of 1.24%, at USD 547.50MT.
Sugar futures prices rose slightly on the New York Stock Exchange, in adjustments, but remained low in London. In addition to technical accommodation, the market was still supported by the appreciation of oil, but bearish factors are still being followed. At around 8:37 am (Brasília time), raw sugar appreciated by 0.05% in the main contract on the New York Stock Exchange (ICE Futures US), at USD 431.00/MT (19.55 cents/lb). At the London terminal, the drop was 0.22%, at USD 541.90/MT.
Egypt
Egyptian Sugar Prices (Jan 2)
In January 2 in Egypt, sugar prices witnessed an increase in the price of delivery of a ton from wholesalers to retail trade in the local market, by about USD 7.25 (200 pounds), with stability in the movement of trading the price of 1kg for consumers. The price of a ton of white sugar rose to USD 634.01 (17,500 pounds) from USD 623.14 (17,200 pounds), while the price of a ton of glucose sugar reached USD 641.25 (17,700 pounds) from USD 634.01 (17,500 pounds). Sugar prices have stabilized for consumers in food stores, where the price per kilo ranges from USD 0.51 (14) to USD 0.54 (20 pounds).
Sugar Prices in Egypt Is Expected to Decline After the Rise of the Dollar (Jan 4)
Hassan Al-Fandi, former head of the Sugar Division of the Food Industries Chamber of the Federation of Industries and a current member, revealed that it is expected that sugar prices will decline in the local market after the movement of the dollar price, but he set a condition, which is the extent to which the dollar will be saved during the coming period. The bulk of sugar is a local product, and therefore it is not supposed to be strongly affected by the movement of the dollar price, in addition to the fact that some of the commodities in the markets were calculated at higher prices for the dollar than those in banks. He added that the Ministry of Supply should increase the movement of sugar imports during the current period and pump it into the markets, which contributes to increasing the supply and fighting any greed on the part of traders during the coming period.
The share of sugar raises a crisis between supply stores and outlets in Egypt (Jan 6)
The Ministry of Supply and Internal Trade is looking to collect the price differences in ration sugar disbursed to some supply merchants in quantities that exceeded the percentages established by the Ministry for each outlet, which are specified at 40% of the value of the commodity replacement for the trader. The Ministry of Supply and Internal Trade had determined the replacement of the ration decisions that are spent on the supply outlets, 40% of sugar, 35% of oil, and 25% of rice, pasta and other ration commodities from the list of the ration system. An informed source revealed the intention of the Ministry of Supply, represented by the General Wholesale and Egyptian Companies, to collect the price differences for sugar spent in quantities in excess of the official quota, from the storekeepers of the two wholesale companies, and to calculate the kilo at a value of USD 0.58 (16 pounds), instead of USD 0.38 (10.5 pounds), while storekeepers demanded to collect the differences.
Dr. Ali Al-Moselhi, Minister of Supply and Internal Trade, confirmed that the strategic reserve of sugar exceeds three months, and that Egypt’s production of sugar reaches 90% of consumption. This points out that the strategic reserve of sugar will increase, in light of the continuation of the cane crop supply operations, and the start of the sugar harvest season. Sugar beet harvest will begin in February. The Minister of Supply and Internal Trade indicated that the price of a ton of cane was raised this season by USD 10.50 (290 pounds) to reach USD 39.84 (1,100 pounds), compared to USD 29.34 (810 pounds) last season. Supply rates, especially after the high cost of production inputs and international prices, stress that these prices achieved a balance between the cost of production and making a profitable profit for farmers.
Kom Ombo farmers thanked the political leadership for responding to their demands to raise the price of supplying a ton of cane for the benefit of the Ministry of Supply and Internal Trade, during the current season, stressing that the state is working to meet farmers' requirements and limit the high prices of fodder, fertilizer and other production inputs. A number of farmers confirmed during the tour of the delegation of the Ministry of Supply and Internal Trade to the Kom Ombo factory to follow up the supply process that the current season will witness a great response to increase the rate of supply in favor of the Ministry of Supply, and to provide the state's needs for subsidized sugar. The farmers indicated that they will continue to work side by side with the state to secure its needs of strategic agricultural products.
The Consumer Protection Agency issued 82 minutes not to announce prices and sell at more than the official price to a number of merchants during campaigns launched by the agency's branches in the governorates. Responsible sources inside the agency said in exclusive statements to Al-Mal that the campaigns also aimed to monitor the quality of products provided to citizens, pointing out that 2MT of sugar of unknown origin were seized. The sources added that 4.5MT of white rice and barley were also seized, banned from circulation to citizens, with the aim of selling them at prices higher than the price set by the government.
Supplying 315K MT of Cane and Producing 31MT of Sugar in Egypt (Jan 8)
The Ministry of Supply and Internal Trade announced an increase in the rate of supply of cane crop to 315K MT for the benefit of the factories of the Sugar and Integrated Industries Company, where about 31MT of sugar were produced. Dr. Ali Al-Moselhy, Minister of Supply and Internal Trade, said that the support provided to cane farmers continues to facilitate the supply process, noting that all sugar factories continue to work day and night to receive the strategic crop from farmers.
