Global
Sugar Turns on the NY Stock Exchange, but Still Falls in London
Sugar futures prices ended this On Monday 28 with a rise on the New York Stock Exchange, but a decline in London. Pressure lasted most of the day after losses seen in oil. However, prices turned with information about the next OPEC meeting. The most traded month of raw sugar on the New York Stock Exchange rose 0.26% on the day, quoted at 19.38 cents/lb, with a high of 19.45 cents/lb and a low of 19.05 cents/lb. At the London terminal, the first contract was down 0.21%, at USD 528.60 a ton. After falling more than 3% in the morning following concerns about demand, as China, the world's largest oil importer, has registered demonstrations against the Covid-19 zero policy, prices have now started to rise for oil. Sugar prices on the spot market work above USD 25.91/bag (R$ 135) amid heated demand and production in the Center-South moving towards completion. On the last day of trading, the CEPEA/ESALQ Indicator for sugar, Icumsa colour 130 to 180, São Paulo market, fell by 0.12%, trading at USD 26.02/50kg bag (R$ 135.54). In the North and Northeast regions of Brazil, sugar was quoted at USD 26.02/50kg bag (R$ 135.54), stable, according to Datagro consultancy data. VHP sugar, in Santos (SP), had the FOB price at USD 21.08 c/lb on the last day of calculation, down 1.08%.
StoneX Sees Global Sugar Deficit in 2021/22 and Surplus in Later Campaign
The world sugar market in the 2021/22 campaign (October/September) closed with a deficit of 1.2 million MT, reversing expectations of a surplus of 300,000MT from the forecast September, according to a survey by consulting firm StoneX. The analysis company explained that August and September (the last two months of the season) saw above-normal rainfall in the Brazilian sugarcane belt, making harvesting difficult. However, this will end up having a positive impact on the new international sugar campaign. For 2022/23 (October/September), StoneX projects a surplus of 5.2 million tons for the world market, higher than the 3.9 million tons of the previous forecast. In Brazil, the damaged harvest in August and September ended up postponing part of the sugar availability for the following months. This, added to the productivity increases that the region should have in 2023/24 (April-March), should give a good "contribution" to the global balance.
Sugar Prices Rise on International Exchanges With Funds Maintaining a Long Position
Sugar prices closed higher on November 29, on international exchanges after having reached a two-week low in New York, on ICE Future, on Monday. According to analysts heard by Reuters, "with funds now holding a large long position, they are unlikely to try to push prices much higher". The March/23 ICE contract in NY closed yesterday at 19.53 cents per pound, 15 points more than the previous day's prices. The May/23 screen rose 11 points, trading at 18.46 cts/lb. The other maturities appreciated between 5 and 10 points. Also according to Reuters, "the market may now be stuck in the 19.00-20.00 cents range for some time," a US broker said, adding that fund buying looked limited ahead and Brazilian mills would likely have a strong end to the season, as there is still a large amount of sugarcane to be processed". In London, white sugar closed higher on most lots of ICE Futures Europe.
Brazil
Brazil’s Weekly Sugar Line-up Drops to 2.12MT on 65 Vessels
Brazil's sugar line-up, schedule of shipments through ports, registered 2.12 million MT in W47, over 3.78 million MT in the previous week, with 1.93 million MT of VHP, according to the Williams maritime agency. Total ships for the period were 65, down from 71 the week before. Most of the schedule was related to the Port of Santos, with 1.32 million MT, followed by Paranaguá with 679,540 MT, according to data released by the company.
With the Mix in Brazil More for Sugar, Commodity Closes Mixed on International Exchanges
With Brazilian mills directing more cane to sugar production to the detriment of ethanol, according to analysts interviewed by Reuters, sugar prices closed mixed on November 25, with a downward trend in most batches on the international exchanges. In New York, the week saw raw sugar prices fall by 3.6%. The March/23 lot was contracted on Friday at 19.33 cents per 0.45kg (pound), down 22 points compared to the previous day's prices. The screens May and July/23 fell, respectively, 12 and 4 points. The other maturities closed with values between 1 and 18 points on ICE Futures. On ICE Futures Europe, from London, white sugar closed in the red on all lots last Friday. The March/23 maturity was contracted at USD 529.70 a ton, a devaluation of USD 9.40 in comparison with the prices of the previous day. On the other hand, the May/23 fabric fell by USD 9, trading at USD 521.60 a ton. The other lots retreated between USD 6.30 and USD 7.40. On the domestic market, Friday saw a drop in crystal sugar prices measured by the Cepea/Esalq Indicator, from USP, interrupting a sequence of three consecutive highs. The 50-kilo bag was traded on Friday at USD 26.02 (R$ 135.54) against USD 26.05 (R$ 135.70) on Thursday, a devaluation of 0.12% compared to the day.
North and Northeast have already processed 24.4 million MT of sugarcane
With 41% of the 2022/23 sugarcane harvest carried out in the North and Northeast regions, data compiled by the Association of Sugar, Ethanol and Bioenergy Producers, up to the second half of October, indicating the processing of 24.40 million MT of sugarcane, a volume 1.1% higher than the 24.14 million MT crushed in the same period of the 2021/22 cycle. Renato Cunha, chief executive of NovaBio, highlights the growth in anhydrous ethanol production, which reached 619 million litres, an amount 4.6% higher than that verified on October 31 of last year, when 591 million litres were produced. The executive also referred to the production of 1.08 million MT of sugar: “The milling pace is as expected and continues as normal. In the case of anhydrous and hydrous ethanol, the units in the North and Northeast produced 48% of the projected volume for the current harvest, while for sugar they reached 34% of the forecast for the 2022/23 cycle ”.
Cane Dominates Agricultural Production
According to a survey by the Seade Foundation, sugarcane production accounted for 48.3% of agriculture in the state of São Paulo last year. However, the still predominant product has been losing space, while soybeans have increased. Although shy, soy production already accounts for 12.1% of production in São Paulo. In 2017, soy planted was only 6.5% of total production. While sugarcane was responsible for 57.1% in the same period. Even so, sugarcane is still the main crop in ten of the state's 16 regions. The city of Ribeirão Preto, in the interior of São Paulo, represents 68% of production in São Paulo, while Araçatuba and Barretos have 67.7% of the produced area. In turn, coffee cultivation has also increased from 3.2% to 5.1% since 2017.
StoneX Raises Forecast for New Sugarcane Harvest in the Center-South of Brazil
Sugarcane crushing in the centre-south in 2022/23 was estimated at 557.5 million MT, stable compared to the previous forecast and an annual increase of 6.6%, according to StoneX. Sugar production in the centre-south in the season with crushing already moving towards the end was estimated at 33.9 million MT, compared to 33.3 million in the previous forecast. The production of ethanol from sugarcane in the centre-south in 2022/23 was forecast at 25 billion litres, with an adjustment in comparison with the 25.3 billion litres of the previous estimate.
Sugar Values Continue to Rise at the End of the Harvest
Average white crystal sugar prices continue to rise in the spot market in the state of São Paulo. At the end of last week, the CEPEA/ESALQ white crystal indicator, Icumsa colour from 130 to 180, reached USD 25.91/50kg bag(R$ 135.00), a nominal level that had not been observed since the beginning of May this year. According to Cepea researchers, the upward movement is attributed to the closing period of sugarcane crushing for the 2022/23 harvest. A survey by Cepea shows that most mills in São Paulo should finish production by the end of this month, with few continuing to grind sugarcane in December.
Sugar Exports From Brazil Exceed 4 Million MT in November, the Highest Level of the Year
Sugar exports from Brazil reached 4.07 million MT in November, an increase of 53% compared to the same period last year and the highest monthly level of 2022, data from the federal government. The advance in shipments occurred at a time when mills in the world's main producer of the sweetener had started to allocate greater volumes of sugarcane for the manufacture of sugar in the 2022/23 harvest, to the detriment of ethanol, in addition to a firm international demand. The schedule for shipments of the Brazilian product is “exploding”, said the president of consultancy Datagro, Plínio Nastari, with the country taking advantage of a delay due to rains in the Indian crop, second global exporter behind Brazil.
Rains Hinder the Final Stretch of the Sugarcane Harvest
The storms and constant rains that have hit many regions of Brazil for a few days have delayed the sugarcane harvest in the final stretch of the period before the off-season in the main producing region of Brazil; the Center-South. On November 30, sugar prices closed higher on international exchanges, with the market on alert about a possible delay in the end of the season or even impeding the harvest in some farms. The rains also hinder the loading of sugar in some units and ports.
Sugar Price Is Almost Stable on Ice in Brazil, With March Contract at 19.62 Cents per Pound
The prices of sugar futures traded on ICE underwent little change this December 1. The raw sugar contract maturing in March was practically stable at 19.62 cents per pound. The market continued to be supported by a prolonged period of rain in the South and Southeast regions of Brazil, which should harm the progress of the sugarcane harvest and also impact sugar loading operations in Paranaguá (PR), the second main port in the country.
Cameroon is a buyer of Minas Gerais sugar from Brazil
Although the result of the match between Brazil and Cameroon, on November 2, was not what was expected, the opponent of the Brazilians in the World Cup in Qatar, is responsible for supplying Brazil with latex, natural rubber, natural gums , among other products, in addition to mainly exporting sugar and molasses. The sugar in these exports is mainly Minas Gerais sugar. Last year, for example, sales of the product in Minas Gerais to the African country totaled USD 1.3 million, with shipments of 3,800 MT. The biggest record registered by the state in terms of shipments was in 2011, with the sale of USD 14 million of sugar. So far, Minas Gerais has exported 2.8 million MT of sugar.
India
Sugar Production Was Marginally up at 47.9 Lakh Tons in Oct-Nov
India's sugar production has increased marginally to 47.9 lakh tonnes in the October-November period , according to industry body ISMA. Sugar marketing year runs from October to September. In a statement, Indian Sugar Mills Association (ISMA) said that production of sweetener till 30th November in the current 2022-23 marketing year is 47.9 lakh MT as against 47.2 lakh MT in the corresponding period of the last year. Number of operating factories is also higher at 434 against 416 which operated last year on the corresponding date.
United States
Weak Macroeconomic Signals Put Downward Pressure on the Sugar Commodity
Weak macroeconomic signals are putting pressure on sugar prices on international markets. On November 29, the commodity closed mixed on international exchanges, reaching a two-week low on the ICE in New York. Another factor that pressured the market was "rare protests against China's strict zero Covid restrictions sparking concerns about demand growth in the world's second-largest economy", highlighted analysts interviewed by Reuters. In New York, the March/23 maturity was contracted on November at 19.38 cents per pound, 5 points more than the day before. The May/23 screen dropped 1 point, trading at 18.35 cts/lb.
March raw sugar advanced 15 cents (0.8%), to 19.53 cents a pound, having hit a 2.5-week low on Monday. However, traders said that with funds now holding a large long position, they are unlikely to try to push prices much higher. “The market may now be stuck in the 19.00-20.00 cents range for some time,” a US broker says, adding that buying funds looked limited ahead and Brazilian mills were likely to see a strong end of season, as there is still a large amount of sugarcane to be processed. March white sugar rose USD 5.10, (1.0%) to USD 533.70 a ton.
Thailand
The Sugar Factory of Thailand Informed the News on December 6
The Sugar Factory of Thailand posted on Facebook notifying progress news. Sugar production for the year 2022/23 started on December 1, by the Cane and Sugar Board (Kon.) and resolved on Friday, November 30, that all 57 sugar mills open the cane crushing process. On December 6, Subject: The final price of sugar cane 2021/22 (according to the cost of cane last year), the deduction of the burning cane 2022/23 and the preliminary price of sugarcane 2022/23 (the cost of cane that was cut into this year's chopping). For the opening of cane crushing 2022/23, many sugar mills have announced their opening but had to postpone because the sugar cane area is raining. It is a huge obstacle for Sugarcane farmers who can't harvest. There is a high risk of sugarcane overruns and sugarcane fields being damaged. The sugar stocks and sugar exports are very tight because the cane crushing opening of the sugar factory has to be postponed from the usual time for more than 2 to 3 weeks. Kanchanaburi, Ratchaburi, Pranburi cane fields are likely to be able to cut cane after the new year.
Turkey
20 Tons of Granulated Sugar Was Distributed to Beekeepers
In the Türkeli district of Sinop, with the support of the Ministry of Agriculture and Forestry, beekeepers were given 35 percent granulated sugar. Turkey Sugar Factories Inc. had 20 tons of granulated sugar delivered to Türkeli by the General Directorate of Agriculture under the coordination of the Sinop Provincial Directorate of Agriculture and was distributed to beekeepers by the Türkeli District Directorate of Agriculture and Forestry.
Russia
After Sugar Production, Beet Pulp From Lipetsk Is Exported
As of November 28 of this year, 3.4 million tons of sweet root crops were processed at 6 sugar factories in the region. More than 470,000 tons of sugar were produced from the beetroot of the new crop. The Lipetsk region annually provides itself with a reserve: it produces 14 times more than the population of the region needs according to the consumption rates recommended by the Ministry of Health. Sugar beet harvesting has already been completed in some areas. Farmers in those areas where work continues have to harvest about 5,000 hectares. At the moment, over 4.7 million tons of sweet root crops have been dug up.
Italy
Italy Decided to Postpone the Sugar Tax for One Year, to January 2024
Italy decided to postpone the sugar tax by one year. Although it is seen as an unfair "tax" by companies, the World Health Organization instead considers it a useful tool for citizens to adopt more balanced and healthy lifestyles and for food companies to modify their product recipes. In Europe, ten countries have already decided to introduce the sugar tax, including Belgium, Finland, France, Hungary, Ireland, Latvia, Portugal, the Principality of Monaco, Norway, and the UK. The idea of introducing the "sugar tax" has been planned since 2019 in Italy, but it was always postponed. The general objective is to reduce the consumption of products with high amounts of sugar. In some cases, the rule also applies to drinks in which sugar is naturally present and those with artificial sweeteners. According to research, a tax-driven price increase induces manufacturers to change recipes. Once the tax is implemented in Italy, it is expected that sugar imports will decrease.
Egypt
After Sugar Production, Beet Pulp From Lipetsk Is Exported
The Ministry of Supply, represented by the Sugar and Integrated Industries Company, paid about USD 0.26 billion (6.3 billion pounds) during the 2022 sugar cane supply season, the value of what was received from farmers and suppliers, at an amount of 7.7 million MT. The sources pointed out that the Ministry of Supply, in cooperation with the Ministry of Agriculture, is currently counting the lands cultivated with the sugar cane crop, with the aim of calculating the total quantities expected to be harvested, and on this basis the quantities targeted to be received from farmers in the 2023 season are determined.
Ukraine
As of mid-November, beets were dug up from an area of 12.2 thousand ha. 683.7 thousand MT of sugar beet were taken from the fields to the beet points, of which 606.5 thousand tons have already been processed. Digestion of sugar beets is 16.7%, sugar content is 14.5%. Since the beginning of the sugar-making season, 87.1 thousand MT of sugar have been produced in the region. "This year, the sugar beet sowing area was increased by 0.8 thousand ha. The weather conditions had a positive effect on the yield and its quality indicators. These factors allow us to hope for an increase in the final result of sugar production in the region by the end of the current year," said the director of the department of agro-industrial development, Tetyana Hetman.
Peru
Ministry of Economy and Finance Updated Reference Prices to Import Sugar
On November 26, through Vice Ministerial Resolution No. 011-2022-EF/15.01, the Ministry of Economy and Finance (MEF) approved the reference prices and additional variable duties applicable to imports of sugar. The reference price for sugar imports will be USD 539/MT and the additional variable duty is USD 99.
Uganda
The Ugandan government has been tasked to operationalize the sugar board to safeguard sugarcane farmers in the country. When fully set up, the board is expected to regulate, monitor, oversee and arbitrate matters in the sugar industry. This will safeguard farmers from the current challenges they face that include unstable prices for sugarcane, delayed and defaulted payments among others. The farm gate price for sugarcane in 2021 and first half of 2022 has been USD 27/MT. However, due to sugarcane shortages and high demand for sugar both domestically and in neighbouring countries, the price has increased to USD 42/MT. Ugandan sugar production in 2021 was 600,00MT for brown sugar and 60,000MT for industrial sugar. These volumes are expected to increase in 2022 to 822,000MT due to the favourable climatic conditions experienced in 2022.
