In W39 in the sugar landscape, sugar futures for the Mar-24 contract experienced a 2.57% decline to USD 0.2658 per pound (lb) on September 25, followed by a further drop to USD 0.2624/lb on September 26. This is due to profit-taking movements after highs of more than a decade in recent days, in addition to following financial fluctuations. Furthermore, the ongoing advancement of the 2023/24 harvest in the Center-South of Brazil added pressure to sugar prices. Data from the Brazilian Sugar Association (UNICA) indicated an 8.54% year-on-year (YoY) increase in sugar output in the South Central region of Brazil, reaching 3.12 million metric tons (mmt) in the first half of Sept-23. During this period, 41.76 mmt of sugarcane was crushed, a 5.35% year-on-year (YoY) increase. On September 27, sugar futures increased by 0.50% to USD 0.2637/lb due to concerns about tight supply in Asia that is expected to continue in the upcoming 2023/24 season, partly due to potential production drops linked to El Niño weather conditions. Finally, on September 28, sugar futures rose 2.24% to USD 0.2696/lb.
In the 2023/24 season (Apr-23 until September 16), sugarcane crushing in the Center-South of Brazil reached 448.33 mmt, a significant increase compared to 406.33 mmt in the same period of the previous season (2022/23). Sugar production since Apr-23 has totaled 29.26 mmt, marking an 18.68% increase compared to the previous cycle. Furthermore, in the 2023/2024 harvest, the productivity of sugarcane fields in central-south Brazil experienced a significant 23% YoY increase, reaching 92.8 mt per hectare (ha). Specifically, in Aug-23, the average productivity in this major sugarcane-producing region also increased by 23.2%, reaching 90.5 mt/ha. This boost in productivity is attributed to favorable weather conditions and investments in sugarcane fields. Consequently, there are expectations of potential record-breaking sugarcane crushing in the current harvest in central-south Brazil, with historical sugar production exceeding 40 mmt.
Indonesia's consumer sugar price dropped by IDR 20 (USD 0.0013) to IDR 15,120 per kilogram (USD 0.97/kg) on Monday, September 25. However, it remains higher than the price recorded the previous week, on September 18, 2023, of IDR 14,950/kg (USD 0.96/kg). Sugar prices have been on an upward trend since Dec-22 and have remained stable above IDR 14,000/kg (USD 0.90/kg). In Apr-23, the price exceeded the highest recorded in 2022, reaching IDR 14,750/kg (USD 0.94/kg).
Lastly, in Ukraine, 338 thousand mt of sugar beets were processed, producing 51 thousand mt of sugar. This harvest came from 23 thousand ha of land in Vinnytsia, representing 42% of the total area allocated for sugar beet cultivation in the region.
