Global

Fitch Solutions Projects a 2% Rise in Raw Sugar Prices in 2023 (Feb 24)

Fitch Solutions said on Feb 23 that raw sugar prices should be, on average, 2% higher in 2023. The estimate is justified by lower production in several regions, including Europe and India, while demand in China should recover. The research arm of credit rating agency Fitch Group says it sees raw sugar rising from an average of USD 410.06/MT (18.6 cents per pound) last year to USD 418.88/MT (19 cents per pound) in 2022. Historically high levels are considered a bad omen for policymakers trying to reduce food inflation. On the supply side, Fitch cited uncertainty over European production following the pesticide ban, adverse weather conditions around the world, and the continued diversion of sugarcane to ethanol production in India, the world's second-largest sugar producer.

OIA Lowers Projection for Global Sugar Surplus in 2022/23 to 4.2M MT (Feb 24)

The International Sugar Organization (IOA) on Feb 24 cut its forecast for the size of the global sugar surplus in the 2022/23 season, driven mainly by lower-than-expected production. The intergovernmental body's quarterly report projected a global surplus of 4.2M MT in 2022/23 (October to September), down from the previous forecast of 6.2M MT released in November 2022. A Reuters poll of traders and analysts released earlier this month had a median forecast for the 2022/23 season of a surplus of 3.25M MT.

Brazil

Crystal Sugar Prices Fall In São Paulo (Feb 20)

The price of crystal sugar registered a retreat in the physical market of São Paulo, according to information that was released by TF Agroeconomia. “The price of a 50 kg bag of crystal sugar recorded yet another decrease of 0.74% in the São Paulo physical market. As a result, its value, which was USD 25.56/sc (BRL 132.93), ended the day valued at USD 25.36/sc (BRL 131.90)”, reads the comments. In the futures market, sugar prices rose due to India not increasing exports. “NY May World Sugar #11 (SBK23) closed up +0.03 (+0.15%) on Feb 17, and London May White Sugar #5 (SWK23) closed up +0. +0.40 (+0.07%)”, it indicates.

Volume of Sugar Scheduled for Export in Ports Grows (Feb 21)

The total number of ships waiting to load sugar in Brazilian ports was 36 in the week ended February 15, compared to 30 in the previous week (08), according to a survey carried out by the maritime agency Williams Brasil. According to the report, shipments of 1.243M MT of sugar were scheduled, compared to 1.021M MT in the previous week. The greater part (937K MT) must be loaded through the Port of Santos (SP). The sugar cargo to be exported consists of the VHP variety (1.154M MT), Cristal B150 (36K MT), Refined A-45 (39.08K MT), and VHP in bags (equivalent to 14K MT). The agency's report takes into account vessels that are already anchored, those that are offshore waiting to berth, and those expected to arrive by March 10th.

Sugar Price Had a Small Drop in the ICE (Feb 23)

Raw sugar futures traded on ICE had a slight decline on Feb 22. Raw sugar for March delivery fell 0.2%, by 0.04 cents to USD 469.36/MT (21.29 cents per pound). Traders said the market was consolidating around current levels after recent gains driven by expectations that production in India could decline in coming months due to adverse weather.

With a Consolidated Market, Sugar Futures Close Mixed on International Exchanges in the US and UK (Feb 23)

In New York, on ICE Futures, raw sugar closed lower on the first two screens, March and May/23, contracted, respectively, at USD 469.36/MT (21.29 cents/lb) and USD 438.72/MT (19.90 cents per pound), devaluation of 4 and 3 points, in comparison with the prices practiced on the previous day. The other screens were valued between 3 and 8 points. In London, at ICE Futures Europe, the May and August/23 screens closed at lows of USD 1.90/MT and USD 1/MT, with deals signed at USD 567 and USD 551.10, respectively. The other screens closed at values between 20 cents and USD 1.80, except the October/24 batch, which dropped 40 cents on the dollar.

Sea Freight Price Reduction Makes Exporting Sugar in Containers Attractive (Feb 23)

After a period of decline motivated by the increase in sea freight, the export of sugar in containers promises to have favorable conditions in the 2022/23 harvest. “After two years without operation, in December and January, we produced 6.7K MT and we are receiving several requests for quotations. These are strong indications of the market resuming this movement”, says Vinicius Cordeiro, commercial executive manager at Brado, a company specializing in multimodal logistics in containers. “Brazil is the world's largest exporter of sugar. In the last harvest, almost 26M MT were sold on the foreign market, against 10M MT in second place, Thailand, according to the United States Department of Agriculture (USDA)”, points out the manager.

Brazil’s São Paulo Registers High Sugar Values in W7 (Feb 24)

Cepea informed that the values of white crystal sugar were on the rise in W7. The price support continues to be justified by the lower availability of better quality sugar (type Icumsa up to 180) in the spot in the state of São Paulo. From the 13th to the 17th of February, the average of the CEPEA/ESALQ Indicator, Icumsa color from 130 to 180, was USD 25.69/50 kg bag (BRL 133.28), an increase of 1.59% compared to the previous week from USD 25.28/sc (BRL 131.18/sc).

Decreases Volume of Sugar Scheduled for Shipments at Brazilian Ports (Feb 24)

The total number of ships waiting to load sugar in Brazilian ports was 31 in the week ended February 22, compared to 36 in the previous week (Feb 15), according to a survey carried out by the shipping agency Williams Brazil. According to the report, shipments of 1.05M MT of sugar were scheduled, compared to 1.243M MT in the previous week. The greater part (837.4K MT) must be loaded through the Port of Santos (SP).

Sugar Movement Stands Out Again in the Port of Santos in January (Feb 24)

Sugar was the highlight in cargo handling at the Port of Santos in January, with a growth of 37.2%, totaling 1.2M MT, compared to the same period in 2022. The commodity was the highlight among cargoes of exports, accompanied by corn, which also performed well, totaling 1.4M MT, a growth of 43.2%. The performance of these loads increased the movement of solid bulk by 0.9%. The general movement in January reached 10.1M MT, a reduction of 4.7% over the same month last year (10.6M MT), a period in which the historical record for January was registered. The drop was mainly determined by the 51% reduction in shipments to the soy complex and the 17.8% reduction in fertilizer shipments.

India

Tridge Analysis: Low Sugar Production in My 2022-23 Results in an Export Cap for Indian Sugar (Feb 20)

According to the Indian Sugar Mills Association (ISMA), domestic sugar output is expected to drop to 34M MT in MY 2022/23, a 5% YoY decrease due to an uptick in the diversion of sugarcane juice to the production of ethanol. As a result, the Indian government has recently placed a cap of 6.1M MT on sugar exports for the current sugar season (Oct 2022-Sept 2023). The lowered export volume would be 44.5% less than the record 11M MT exported by the South Asian country in the previous season. The sugar export cap is set to impact India's major markets, Indonesia, Malaysia, Sudan, Bangladesh, Somalia, and the UAE. This would allow rivals Thailand and Brazil to increase their shipments, thereby taking advantage of India's export deficit. 

India’s Sugar Production May Fall Further (Feb 20)

India is likely to produce less sugar than previously estimated by industry bodies and government agencies, with the cane crop maturing early and losing weight due to weather conditions in key growing regions according to farmers and traders. Lower sugar output could prevent the world's second-largest exporter from allowing additional exports, potentially propping up global prices and helping rivals Brazil and Thailand boost their shipments. India is estimated to produce 34M to 34.3M MT of sugar in the 2022/23 marketing year, which ended Sept 30, down from 35.8M MT last season, according to trade bodies last month.

Maharashtra’s Sugar Production Is Forecasted to Fall to 12.2 - 12.5M MT (Feb 22)

Mills expect sugar output to be around 12.2-12.5M MT, higher than the 11.7M MT forecasted by the Indian Sugar Mills Association (ISMA) at the end of January. The mills pay fairly regularly to the sugarcane farmers. 202 mills in operation have crushed 63.5M MT of sugarcane and are obliged to pay farmers USD 1.83B (INR 151.66B). Of these, USD 1.61B (INR 132.76B) has been paid to farmers, while USD 0.28B (INR 22.97B) is pending. 76 factories have paid 100% and the remaining 126 factories will have to pay their debts. Mills say the drop in sugar production is not the only problem they face this season.

Haryana Government Initiates Climate-Smart Agriculture in 1,669 Villages (Feb 26)

It is now bearing fruit in just a year, and the results are encouraging with the government saying micro-irrigation has increased the yield of fruits and vegetables by 52%. As the situation in Haryana's 85 blocks in 19 districts has been critical with low availability of canal water and an increasing dependency on groundwater, especially for sugarcane cultivation on over 2.5M acres, the BJP-led government has initiated climate-smart agriculture practices in 1,669 villages in 36 blocks. It is now bearing fruit in just a year, and the results are encouraging with the government saying micro-irrigation has increased the yield of fruits and vegetables by 52%. 

United States

Raw Sugar Closes Lower on ICE (Feb 21)

March raw sugar fell 0.08 cents, down 0.4%, to USD 470.25/MT (21.33 cents a pound). The contract hit a six-year high of USD 482.59/MT (21.89 cents/pound) earlier this month. Traders say that sugar, despite the minor setback, continues to draw support from rumors that production in India will drop rapidly this season due to cane ripening early and losing weight. They note that Alvean, the world's biggest sugar trader, is estimating Indian production at 33.5M MT, with many others seeing it even lower. May white sugar fell USD 1, down 0.2%, to USD 568.90/MT.

Sugar in NY Has a Mixed Close, but Production Concerns Remain in India (Feb 21)

Sugar futures prices ended the session on Feb 21 with mixed prices in NY. The March maturity dropped 0.4% and closed at USD 470.25/MT (21.33 cents/lb). The other contracts had a positive day with May at USD 439.38/MT (19.93 cents/lb) and July at USD 428.14/MT (19.42 cents/lb). According to an analysis by the international website Barchart, sugar prices have been supported since Feb 17, when India said it would not allow additional exports of the product beyond the 6.1M MT already authorized for this season. The government is concerned that a smaller sugar crop in that country could restrict domestic supply this year, so it has decided not to allow additional exports.

Sugar Prices Goes up on ICE (Feb 23)

March raw sugar was up 0.29 cents, up 1.4%, to USD 475.76/MT (21.58 cents a pound). Traders say the market is increasingly focusing on the March contract expiring later this month, with the recent sharp decline in open interest indicating that there may be relatively little delivery. May white sugar gained USD 7.70 (1.4%), to USD 574.70/MT. Fitch Solutions said it sees raw sugar prices an average of 2% higher this year, as production is likely to disappoint in several regions, including Europe and India, while demand in China is expected to recover.

With Support From Oil and the Exchange Rate, Sugar Advances More Than 1% On the New York and London Stock Exchanges (Feb 23)

Sugar futures prices advanced more than 1% on the New York and London stock exchanges on Feb 23. The market is supported by oil and the exchange rate, in addition to concerns about the Indian crop. There are also adjustments before the eve. Around 2:16 pm (Brasília time), raw sugar was up 1.96% in the main contract on the New York Stock Exchange (ICE Futures US), quoted at USD 447.54/MT (20.30 cents/lb). At the London terminal, the jump was 1.75%, at USD 576.90/MT.

Sugar Soars on the New York and London Stock Exchanges With Financial Support (Feb 23)

Sugar futures contracts ended on Feb 23 with a significant rise in the New York and London stock exchanges. The sweetener market was supported by financial, oil, and exchange rates, in addition to concerns about supply. The most traded contract for raw sugar on the New York Stock Exchange rose 2.21% to USD 448.42/MT (20.34 cents/lb), with a high of USD 449.74/MT (20.40 cents/lb) and a low of USD 438.28/MT (19.88 cents/lb), but other contracts even reached at USD 462.97/MT (21 cents/lb).

Sugar Retreats in New York and London Stock Exchanges on Feb 6 With Profit Taking (Feb 24)

Sugar futures contracts had a slight to moderate fall on the New York and London stock exchanges on Feb 24. The market feels pressure from a profit-taking movement after hitting USD 462.97/MT (21 cents/lb) in the first contract. At around 8:49 am (Brasília time), raw sugar was down 0.64% in the main contract on the New York Stock Exchange (ICE Futures US), at USD 445.55/MT (20.21 cents/lb). In London, the drop was 0.73%, at USD 570.50/MT.

Sugar Plummets More Than 3% On the NY Stock Exchange, US (Feb 24)

Sugar futures prices ended on Feb 24 with a significant drop on the New York and London stock exchanges. The market was impacted by a profit-taking movement, in addition to financial and data from Brazil. The most traded maturity of raw sugar on the New York Stock Exchange fell 3.29%, to USD 433.65/MT (19.67 cents/lb), with a high of USD 450.40/MT (20.43 cents/lb) and a low of USD 432.77/MT (19.63 cents/lb). In London, the first contract retreated 2.21% on the day, at USD 562/MT. The sweetener market started this Friday's session already with losses on the stock exchanges in a profit-taking movement, but the scenario was expanded with the financial, in addition to data on the 2023/24 crop in the Center-South of Brazil. The new sugarcane season in the country tends to be positive, as rains have been recorded in the belt in recent months.

Thailand

Sugar Mills Plan Help in Harvesting to Stop Burning of Sugar Cane by Farmers in Thailand (Feb 20)

Sugar mills across Thailand are working to tackle the problem of sugar cane burning to reduce PM2.5 pollution. The Office of Cane and Sugar Board (OCSB) recently invited all parties involved in the cane and sugar industry, including representatives of sugar cane farmers and sugar mills to discuss measures to end the burning of sugar cane to reduce the environmental impact and the occurrence of PM2.5 (particulate matter smaller than 2.5 microns in diameter). The plan to solve this problem is by “granting contracted farmers a loan for purchasing sugar cane harvesting trucks, so they can harvest sugar cane at a low cost compared to using laborers,” Pramote explained.

France

New Approach Should Bring Peace Back to French Beet Growers (Feb 21)

The French government had agreed with the beet sector in the country to phase out the use of neonicotinoids (neonics) for seed within three years. To this end, she initiated a plan to come up with alternatives. That plan has not yet produced full-fledged alternatives, but a newly devised approach should change this. A few weeks ago tractors drove through the center of Paris for the first time in years. The reason for this was the ruling of the Court of Justice of the European Union (EU) on 19 January 2023, which ruled out the use of neonics for sugar beet seed. That ban has been in effect in the EU for two years, but a derogation has allowed French beet growers to use seed treated with neonics for the past two years. France had the plan to grant a derogation for the very last time, but the European judge drew a line, according to reports on Agroberichts Buitenland.

Russia

Sugar Production in Russia Increased by 2.4 Times in January (Feb 22)

The production of white sugar in Russia in January 2023 increased by 2.4 times compared to the same period in 2022 and amounted to 370.3K MT. "White beet sugar in January 2023 produced 370.3K MT, which is 2.4 times more than in January 2022, but 64.4% less than in December 2022," the ministry said. According to Rosstat, the production of chocolate and confectionery products with sugar in January amounted to 145.3K MT.

Indonesia

Ahead of Ramadan, Indonesia Imports a Lot of Sugar (Feb 21)

Approaching Ramadan, Indonesia opens imports of food commodities, especially meat, and sugar to meet demand. The government will import 237.58K MT of white crystal sugar (GKP) for public consumption. This GKP import will be carried out by ID Food through an assignment scheme.

United Kingdom

Sugar Operates in Mixed Territory in NY, USA, and London (Feb 22)

Sugar futures contracts operated in mixed territory on Feb 22 on the New and London exchanges. The market is aware of concerns about India, but is optimistic about Brazil's crop, and monitors financial fluctuations. Around 12:47 am (Brasília time), raw sugar was stable in the main contract on the New York Stock Exchange (ICE Futures US), quoted at USD 439.38/MT (19.93 cents/lb). At the London terminal, the drop was 0.12%, at USD 568.20/MT. The sugar market has been closely following information from India sinceW7. The government is concerned that a smaller sugar crop in India could constrain domestic supplies this year and will not increase export quotas.

Sugar Starts Feb 23 Session With Appreciation in the US and UK (Feb 23)

Sugar futures contracts began on Feb 23 with a slight rise in the New York and London stock exchanges. The market has support from an adjustment of positions, after the previous session which closed in the red at the terminals. Around 8:41 am (Brasília time), raw sugar was up 0.25% in the main contract on the New York Stock Exchange (ICE Futures US), quoted at USD 439.82/MT (19.95 cents/lb). At the London terminal, the advance was 0.19%, at USD 568.10/MT.

Sugar Futures Closed Higher (Feb 24)

Traders polled by Reuters noted that "the market is increasingly focusing on the March contract expiring later this month, with the recent sharp decline in open interest indicating there may be relatively little delivery." In New York, on ICE Futures, raw sugar closed up 29 points at maturity on March/23, contracted at USD 475.76/MT (21.58 cents per pound), an appreciation of 1.4% compared to the previous day's prices. The May/23 screen rose 44 points, trading at 448.42/MT (20.34 cents per lb).

South Africa

South African Farmers List Their Top Concerns (Feb 20)

Farmers from various industries within the sector are hoping that finance minister Enoch Godwangwana comes to the party during March 1 budget speech. Tax cuts, fuel, and road accident levies, no increase in the health promotion levy, and an Eskom bailout all feature prominently on their wish lists. South Africa’s farmers are hoping for a spirit-lifting budget speech from the finance minister, Enoch Godongwana. As far as agriculture is concerned, the budget should reflect a government that is serious about saving agriculture, rural jobs, and livelihoods.

South African Cane Growers Call on Parliament to Get Sight of Treasury’s Sugar Tax Policy-Making (Feb 20)

Sugarcane industry organization SA Cane growers has written to the chairperson of Parliament’s Standing Committee on Finance requesting oversight into the National Treasury’s policy-making regarding the Health Promotion Levy, which is also known as the sugar tax. The organization says this request comes after the Treasury failed to respond to a request under the Promotion of Access to Information Act to provide the reasoning behind the ongoing implementation and the planned increase of the levy.

Egypt

The Supply of Cane Crops in Egypt Reaches 3.2M MT and the Production of 310K MT of Sugar Since the End of Last December (Feb 20)

The rates of supply of the cane crop from farmers amounted to 3.2M MT of cane. This was confirmed by the Sugar and Complementary Industries Company of the Holding Company for Food Industries at the Ministry of Supply, noting that the season started at the end of last December and until Feb 19, about 310K MT of sugar were produced from the quantities that It was supplied by farmers and is being refined, packaged and delivered to the Holding Company for Food Industries, which will, in turn, put it in the stores of the Egyptian wholesale and general companies for wholesale trade, to distribute it to the supply outlets.

Kenya

Sugarcane Prices Are Unchanged as the Team’s Mandate Ends (Feb 20)

Sugarcane prices have remained unchanged at USD 42.42/MT since last year after the term of the committee mandated to review the amounts paid to farmers expired in November. The Sugar Cane Pricing Committee is charged with the task of reviewing prices every three months, however, its term lapsed three months ago and has not been renewed. Head of the Sugar Directorate Wills Audi confirmed that the prices have not been reviewed since November.

Venezuela 

Sugar Cane Producers Demonstrate, Demand Fuel Access (Feb 24)

Venezuelan farmers staged a protest on Feb 23 in Portuguesa state. Over 50 sugar cane growers rallied outside the local headquarters of the Agriculture Ministry in the town of Acarigua. They demanded the Venezuelan government address several issues currently hurting production in the countryside. “We find ourselves in a state of emergency right now,” spokeswoman Blondy Sangronis said. Sangronis currently serves as the national coordinator of the Confederation of Bolivarian Sugar Cane Producers (CONCABOVEN). The farmers presented a document proposing several solutions which were received by Agriculture Ministry director Gustavo Rojas. They expressed their desire to “collaborate” with authorities but did not rule out further demonstrations, including in Caracas, should there be no response.

Tanzania

Tanzania’s Government Develops Small-Scale Sugar Processing Machines to Help Sugarcane Farmers (Feb 23)

The Tanzanian government is developing small-scale sugar processing machines for sugar production at sugarcane farming locations. By June 2023, the machines will begin to be tested, and the sugarcane farmers will be able to process 200MT of sugar cane per day, equivalent to 20MT of sugar. There has been a challenge of sugarcane damage due to a lack of market and large factories exceeding their processing capacity. Tanzania imported 50K MT of sugar in 2021, and the government is planning to stop importing sugar by 2025.

Bangladesh

The NBR of Bangladesh Lifts Import Duty on Sugar (Feb 26)

The National Board of Revenue (NBR) on Feb 26 waived the import duty on both raw and refined sugar to allow consumers to control prices. In a notification, the customs authority withdrew USD 28.72/MT duty on the import of raw and USD 57.44/MT on refined sugar, with immediate effect. After the reduction, the overall import cost of raw and refined sugar is expected to decline by USD 62.23/MT and USD 86.16/MT respectively, according to an estimate by the NBR. At the same time, the NBR also reduced regulatory duty on the import of sugar from 30% to 25%, the notification also read.