In W30 in the sugar landscape, raw sugar futures on the New York Stock Exchange (NYSE) experienced fluctuations. On Monday, July 24, sugar futures for the Oct-23 contract were down 0.36% to 24.92 cents/lb, following a morning surge to one-month highs. This is due to profit-taking and concerns about drought conditions in Brazil affecting sugar crops. The downward trend continued on Tuesday, July 25, with a 0.92% drop to 24.69 cents/lb, influenced by profit-taking, exchange rates, and data from Brazil's Center-South region, which showed an 8.9% year-on-year (YoY) increase in sugar production for the first half of July, reaching 3.24 million metric tons (mmt) compared to 2.98 mmt in 2022. On Wednesday, July 26, raw sugar futures fell again by 1.22% to 24.39 cents/lb due to production data from Brazil and pressure from oil prices, which dropped 1% amid fears about the demand for the sweetener with attention to the United States (US). However, on Thursday, July 27, sugar futures closed higher at 24.43 cents/lb as the market consolidated.
European sugar importers and producers are currently negotiating contracts for the 2023/24 harvest season at a quoted price of over USD 1101.03/metric ton (mt), more than double the price from the previous year. As a result, consumers in Europe may face higher prices for popular sweets. Since October of the previous year, sugar prices on the spot market have risen by 58%. The weather conditions also contribute to concerns about higher prices due to slow planting and rising temperatures, increasing the risk of drought and pests. Additionally, analysts are worried about the yellow virus, a disease that threatens sugar beet crops. Therefore, experts estimate that Europe's sugar production could fall below the EU's initial estimate of 15.5 mmt to 14.8 mmt.
Sugar beet crops in Russia covered a total area of 1.046 million hectares (ha), with 247.5 thousand ha in the South, 622.5 thousand ha in the Central Chernozem region, 152 thousand ha in the Volga-Urals regions, and 24 thousand ha in the Altai Territory. Moreover, Russia's sugar production for the 2023/24 season is expected to be around 6.4 mmt, including the processing of syrup and molasses, which is 200 thousand mt higher than the previous year.
In Vietnam, the Vietnam Sugarcane Association (VSSA) predicts an increase in sugarcane planting area and output in the 2022/23 season. The sugarcane area is expected to reach 151,305 ha, with processed sugarcane output estimated at 8,76 mmt and sugar production reaching 870,930 mt, representing a 16.6% YoY increase. Lastly, Egypt's white sugar prices witnessed a gradual increase during July, between USD 64.83/mt and USD 194.49/mt, compared to their levels last June, with the average price of white sugar currently ranging between USD 680.70/mt and USD 810.36/mt.