W50 Sugar Update: Brazilian Exports Remain Strong while Indonesia Require Urgent Imports

Brazil's Sugar and Molasses Exports Surge in Dec-23

In the first six working days of Dec-23, Brazil's sugar and molasses export volume reached 880.39 thousand metric tons (mt), with an export value of USD 472.76 million, as reported by the Secretariat of Foreign Trade (SECEX). In comparison, the export volume for Nov-23 was 3.68 million metric tons (mmt). The daily average export volume for Dec-23 was 146.73 thousand metric tons (mt), representing a notable 46.5% year-on-year (YoY) increase, while the average export prices surged by over 24% YoY, reaching USD 537/mt.

Record Sugarcane Harvest and Sugar Production in Brazil in 2023/24

In the 2023/24 harvest, sugarcane crushing in Minas Gerais, Brazil, reached a significant milestone, totaling 77.6 mmt by December 1, marking a notable 15.6% YoY increase. Sugar production also experienced a substantial surge, rising by 17.2% YoY to reach 5.34 mmt. In the second half of Nov-23, sugar production saw an 11% YoY increase to 295 thousand mt. Ethanol production reached 3.18 billion liters, with hydrous and anhydrous ethanol recording 14.7% and 7.9% YoY increases, respectively. According to Siamig's president, the processed volume of sugarcane has already surpassed 83% of the total harvest estimate, reaching a new record level.

AGI Urges Immediate Increase in Sugar Imports in Indonesia to Ensure Domestic Market Stability

The Indonesian Sugar Association (AGI) calls for an immediate increase in sugar imports to stabilize domestic prices. Challenges such as global price fluctuations, the El Niño effect, and exchange rate volatility have hindered sugar imports. In 2023, Indonesia’s designated raw sugar import quota is 990 thousand mt, however, only 50% of this quota has been fulfilled. AGI warns that stagnant imports may deplete sugar stocks, leading to price surges. Brazil is the primary sugar supplier to Indonesia, followed by India and Thailand. However, India and Thailand are also grappling with sugar shortages due to the negative impacts of El Niño. With domestic sugar production falling short of demand, Indonesia must implement effective measures to secure its sugar supply in 2024.

Sugar Beet Producers in Poland Call for Immediate Ban on Ukrainian Sugar Imports Amid Production Concerns

The National Association of Sugar Beet Producers in Poland formally requested the Polish government to impose an immediate ban on sugar imports from Ukraine. The association highlights that Poland anticipates producing around 2.3 mmt of sugar in the 2022/23 season but may need to reduce production in the following season if sugar imports from Ukraine persist. Drawing attention to the precedents set by Slovakia and Hungary, which have already prohibited sugar imports from Ukraine, the association is also urging the restoration of the initial annual quota of 20 thousand mt for Ukrainian sugar imports. The response from the new government is awaited, with the Minister of Agriculture, Czeslaw Siekerski, acknowledging the ongoing openness of the European market to Ukraine.