Weekly Product Updates

W47 Sugar Update: USDA Lowers Global Sugar Production Estimate, China's Sugar Imports Decrease

Sugar Beet
China
Market & Price Trends
Sugarcane
Hungary
Published Dec 1, 2023
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USDA Lowers 2023/24 Global Sugar Production Estimate

The United States Department of Agriculture (USDA) lowered its estimation of global sugar production from 187.88 million metric tons (mmt) to 183.46 mmt in its semi-annual report. The USDA also forecasted a 1.16% increase in global sugar demand to 178.43 mmt, compared to 176.38 mmt for the 2022/23 season. The new estimates present a supply surplus of 5.03 mmt in 2023/24 after a deficit of 1.07 mmt in 2022/23. The higher-than-expected production growth in Brazil and India will compensate for the anticipated decline in Thailand and Pakistan for the 2023/24 season.

China's Sugar Imports Decrease by 30.65% YoY in Sep-23

China's sugar imports in Sep-23 showed a 12.19% year-on-year (YoY) decrease in value and a significant 30.65% YoY decline in volume. The accumulated import value for the first nine months of 2023 was USD 1.15 billion, and the import volume was 2.11 mmt, dropping by 32.56% and 30.65%, respectively, compared to the same period of 2022. Brazil remains the leading supplier, with a total value of USD 862 million, a decrease of 28.99% YoY.

Sugar Cane Farmers in Thailand Request Increase in Price by 30 Baht/MT

Sugar cane farmers in Thailand requested an increase of sugar cane price by USD 0.84 per metric ton (mt) or 30 THB/mt to USD 39.2/mt (1,400 THB/mt). This request comes in response to the suggested price set by the Office of the Cane and Sugar Board (OCSB) at USD 38.36/mt (1,370 THB/mt). The board is expected to deliberate before holding a public consultation on December 8 and make the final decision on December 9.

Hungary Resumes Sugar Imports from Ukraine

Lastly, the Hungarian government has resumed importing sugar from Ukraine due to the surging global sugar prices. However, this move has faced opposition from the president of the National Association of Sugar Beet Growers (CTOSZ), who believes that the influx of cheap Ukrainian sugar could potentially harm the interests of domestic sugar beet growers already grappling with high production costs. While the sugar ban has been lifted, certain products remain prohibited.

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