Sugar Contracts Rose on January 3 (Jan 16)
Sugar futures closed on January 13 higher on international exchanges, supported by the price of oil, which rose 1%, due to exchange rate variations and the fuel situation in Brazil. All lots of white sugar closed with depreciation at ICE Europe in London. The March/23 contract, traded at USD 547.30, fell by USD 8.00. The May/23 contract, traded at USD 528.20, also fell by US$D .20. Raw sugar, on the other hand, closed the first three batches with appreciation on ICE Futures in New York. The March/23 contract, traded at USD 434.97/MT (19.73 cents/lb), rose 14 points. The May/23 contract, traded at USD 405.87/MT (18.41 cents/lb), rose 7 points. The October/23 contract, traded at USD 386.47/MT (17.53 cents/lb), remained stable.
Lower Sugar Prices Prevail, Despite Off-Season (Jan 17)
White crystal sugar prices fell for another week despite the current 2022/23 off-season. From January 9th to 13th, the average of the CEPEA/ESALQ Indicator, Icumsa color from 130 to 180, was USD 26.14/50 kg bag (R$ 134.38), down 0.96% compared to the W2. According to researchers from Cepea, most buyers were supplied and were also counting on receiving previously contracted sugar. In recent days, the liquidity captured by Cepea even increased, due to specific negotiations involving larger amounts.
Adverse Weather Affects Sugarcane Harvest in India and Reduces Sugar Production (Jan 17)
India is expected to produce 34.3M MT of sugar in 2022/23, down 4% from the previous forecast, after cane production in major producing states was hit by adverse weather. Lower sugar output could limit exports from the world's second-biggest exporter, pushing up global prices and allowing rivals Brazil and Thailand to increase shipments. India, the world's biggest sugar producer, had produced a record 35.9M MT in the previous season, which ended Sept. 30.
India’s Sugar Output Increased by 4% From October 1-January 15, Hitting 15.7M MT (Jan 17)
India's sugar production grew by nearly 4% since the current season began last October. This can be attributed to increased operation of more mills in the country. Mills have produced 15.7M MT of sugar so far this season, up from 15.1M MT churned out during the same period a year earlier. Between October 1 and January 15, 515 sugar mills were operational in the country against 507 mills a year ago. India is the world's largest producer of sugar and the second-largest exporter. Indian mills exported an all-time high of more than 11M MT of sugar in the 2021/22 season. During the current 2022/23 season, Prime Minister Narendra Modi's government has allowed overseas shipments of 6M MT of sugar, and New Delhi may permit more overseas sales of the sweetener in the second tranche.
India Is Unlikely to Allow New Batch of Sugar Exports (Jan 19)
India does not intend to allow more sugar exports, government and industry officials said, dampening speculation that the world's biggest producer of the sweetener would allow a second tranche of shipments abroad. India, the world's largest sugar exporter after Brazil, recorded record shipments of 11M MT in the previous season through September 30, 2022. The government allowed sugar mills to export just 6.1M MT of the sweetener in the current season, which started on October 1, 2022. Food price inflation was high at the start of the season, leading to restrictions on exports.
India Produces Record Over 5K Lakh MT of Sugarcane in Sugar Season 2021/22 (Jan 19)
The Ministry of Consumer Affairs, Food and Public Distribution on January 19 said that a record of more than 5K Lakh Metric Tons (LMT) sugarcane was produced during the 2021-22 sugar season. India emerged as the world’s largest producer and consumer of sugar as well as world’s 2nd largest exporter after Brazil in sugar season (Oct-Sep) 2021-22. Timely intervention of the Central Government since the last 5 years is crucial in building the sugar sector step-by-step from taking them out of financial distress in 2018-19 to the stage of self-sufficiency in 2021-22.
Raw Sugar Price Rises on Ice Ahead of US Holiday (Jan 16)
Raw sugar futures traded on ICE rose on January 13th, with the prospect of ethanol reenactment in Brazil, which could lead to a lower supply of the commodity. Brazil's Ministry of Finance announced a plan on January 19 to reinstate federal fuel taxes, but the final decision rests with President Luiz Inacio Lula da Silva. Ethanol could gain market share if taxes are reinstated. The raw sugar contract for March delivery was up USD 0.0014 (0.14 cents), 0.7%, to trade at USD 434.97/MT (19.73 cents/lb). Traders said the market was subdued, with some traders adjusting positions ahead of the US holiday break. As a result, there was no trading of raw sugar on January 16th, on the ICE exchange in New York. The white sugar contract due in March rose USD 8, 1.5%, to USD 547.30/MT.
Raw Sugar Futures Fall on ICE on Favorable Weather in Brazil (Jan 20)
The raw sugar futures contracts traded on ICE fell on January 19, despite the bullish news for prices coming from India, as the weather remained favorable for crops in Brazil, the largest producer. Raw sugar for March delivery closed down 0.14 cents, 0.7%, to settle at USD 433.87/MT (19.68 cents/lb) after hitting a high of 20.25 cents the previous day. The climate is very positive for the new crop in Brazil. However, India does not intend to allow more sugar exports, government and industry officials said, dampening speculation that the country would allow a second tranche of overseas shipments.
CTC Says Approval of Transgenic Sugarcane by China Will Accelerate Adoption in Brazil (Jan 18)
China's approval of two transgenic sugarcane varieties developed in Brazil will accelerate the technology's adoption in the country, as the Asian giant is the biggest global importer of sugar, the Center for Sugarcane Technology said. On January 19, China's Ministry of Agriculture announced authorizations for imports of transgenic agricultural products, covering two varieties of genetically modified sugarcane, CTC20Bt and CTC9001Bt, both developed by the CTC, with 100% Brazilian technology. The two Bt canes, the first transgenic canes on sale in the world, are resistant to the insect known as the borer. The use of this technology, according to the CTC, provides gains to Brazilian sugarcane plantations by contributing to the control of the pest that causes annual losses of R$ 5 billion.
Fixed Price Started in Sugar (Jan 17)
The Beet Sugar Producers Association (PANŞEK) announced that they have started a "fixed price" application on the ex-factory price of sugar until 1 September. The association stated that there are 33 sugar factories in Turkey, 15 of which are public, 12 of which are private and 6 of which are cooperatives. They also indicated that 2.6M MT of beet sugar will be produced in the 2022/23 production period in these factories, and that this production will meet the country's needs.
White Sugar Closes Higher on Expectations for Crops in Brazil and India (Jan 17)
White sugar futures closed higher on January 16 at ICE Europe in London. The March/23 contract, traded at USD 553.10, fell by USD 5.80. The May/23 contract, traded at USD 534.30, also fell by USD 6.10. The other lots closed with a high valuation of USD 3.50 to 3.10. The session was driven by optimistic expectations regarding crops in the Center-South region of Brazil and India. There is also the possibility that the plants will boost the production of sugar instead of ethanol in Brazil in the next harvest. New York ICE Futures New York was closed on January 16 due to Martin Luther King Jr. Day, a US national holiday. Crystal sugar, according to USP's Cepea/Esalq Indicator, closed with an appreciation of 0.53% compared to the previous day. The 50 kg bag was traded for USD 26.24 (R$ 134.85).
There Are No Prerequisites for Conducting Procurement Interventions for Sugar in the Russian Federation (Jan 19)
The Ministry of Agriculture does not see any prerequisites for conducting procurement interventions for sugar in Russia. As explained in the ministry, the established maximum minimum price level for sugar, at which government procurement interventions are carried out, until July 30, 2023 is USD 0.49K/MT (33.6K rubles/MT). Now sugar is traded at an average price of USD 0.73K/MT (50K rubles/MT), which makes purchases inappropriate. Earlier, the Ministry of Agriculture announced the possibility of purchasing 250K MT of sugar for the intervention fund.
Sugar Closes Lower in New York and London (Jan 20)
On ICE Futures in New York, raw sugar in the March/23 contract, traded at USD 433.87/MT (19.68 cents/lb), fell by 14 points. The May/23 contract, traded at USD 405.87/MT (18.41 cents/lb), fell by 13 points. ICE Europe in London points out that white sugar in the March/23 contract, traded at USD 546.50, also fell by USD 5.10. The May/23 contract, traded at USD 530.30, also fell by USD 4.50. The other batches of international exchanges also closed down. Crystal sugar rose 1.01% compared to the previous day. The 50 kg bag was traded for USD 26.21 (R$ 134.73).
Egypt Exports USD 20M of Sugar and Its Products (Jan 19)
Statistics issued by the Central Agency for Public Mobilization and Statistics, confirmed that the volume of Egypt’s exports of sugar and its products, during the period from January 1, 2022 to September 2022, amounted to about USD 357.756M. The report of the agency indicated that Egypt exported sugar at a value of USD 175.380M, and black honey exports came at a value of USD 46.50M, followed by exports of glucose sugar at a value of USD 42.493M.
Ugandan Sugar Prices Are Projected to Keep Increasing in 2023 (Jan 16)
Ugandan sugar prices are expected to keep increasing in 2023. In W2, sugar was retailing at an average price of USD 1360/MT, up from USD 1080/MT in October 2022. The price increase was due to reduced sugar cane supplies from growers and an increased number of processors, which brought competition to already scarce raw materials. The number of growers significantly decreased as many opted out of the sugar cane scheme due to the low prices that were offered in the 2020/21 season, where supplies were higher than demand, mainly as a result of the COVID–19 pandemic.
Government of Nepal Fixes Floor Price of Sugarcane (Jan 19)
Farmers were not happy with the revised price because the government fixed the minimum support price of sugarcane at USD 4.14/100 kg (Rs 540l), which was USD 0.15 (Rs 20) more than the floor price set for the last fiscal year. A Cabinet meeting held on Jan 18 decided to revise the floor price for the sugarcane producing farmers. The Cabinet took the decision on the recommendation of the Ministry of Agriculture and Livestock Development (MoALD) and the Ministry of Industry, Commerce and Supplies.