W10 Sugar Update: Bashkiria's Sugar Sector Thrives, Export Surplus Emerges as Brazil's Sugar Exports

Published 2024년 3월 15일

In W10 in the sugar landscape, the sugar industry in Bashkiria, Russia, closed the 2023 production season on a high note, boasting a substantial 11.4% YoY increase in output, positioning the region for export opportunities beyond domestic consumption levels. With gross sugar production reaching 227 thousand mt, Bashkiria is poised to supply surplus sugar to domestic and international markets, evidenced by a threefold increase in sugar exports compared to 2022. Meanwhile, Brazil's sugar and molasses exports kicked off Mar-24 with robust figures, showcasing significant growth in export volumes, daily rates, and shipment prices compared to the same period in 2023, signaling a promising start for the month.

Bashkiria's Sugar Production Surges, Leading to Potential Price Stability and Export Opportunities

Sugar factories in Bashkiria, Russia, have concluded the 2023 production season with a significant increase in output. Bashkiria's sugar sector is experiencing a period of growth, exceeding domestic consumption levels and creating export opportunities. Gross sugar production in Bashkiria reached 227 thousand metric tons (mt), representing an 11.4% year-on-year (YoY) increase.
The Ministry of Agriculture of Bashkiria expects to supply surplus sugar to domestic and international markets. Sugar exports from Bashkiria in 2023 reached 71 thousand mt, a threefold increase compared to 2022 (23.5 thousand mt). Export destinations included Afghanistan, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, and others. The Institute for Agricultural Market Studies (IKAR) predicts Russia's overall sugar production for the 2023/24 season (Aug-23 to Jul-24) to reach 6.8 million metric tons (mmt), a 10.5% YoY increase. This potential overproduction could lead to price stabilization or even a decrease in domestic retail sugar prices. Bashkiria is also exporting beet pulp, a by-product of sugar beet processing used as livestock feed. In 2023, 7.8 thousand mt of beet pulp was exported to Kazakhstan and China.

Strong Start for Brazilian Sugar Exports in March 2024

Brazil's sugar and molasses exports have exhibited a robust performance in the initial days of Mar-24, exceeding figures from the same period in 2023. As of March 11, 2024, Brazil has exported 1.094 mmt of sugar and molasses. This represents a significant increase compared to 1.827 mmt from the same period in Mar-23. Accumulated revenues from sugar and molasses exports in Mar-24 stand at USD 565.61 million.

The average daily export volume for sugar and molasses in Mar-24 is 182,457 thousand mt per day, reflecting a substantial 129.6% YoY increase compared to the daily average of 79,460 thousand mt per day in the initial days of Mar-23. Shipment prices for Brazilian sugar and molasses have also witnessed an upward trend, currently at USD 516.70/mt, representing a YoY increase of over 13%.

The initial data suggests a promising outlook for Brazilian sugar and molasses exports in Mar-24. The significant rise in export volumes, daily export rates, and shipment prices point towards a potentially strong performance for the month compared to 2023.