Global
Global Sugar Surplus in the 2022/23 Harvest Is Raised by Datagro to 4.76M MT (Dec 29)
The global sugar surplus forecast for the 2022/23 harvest (October-September) was again raised by Datagro consultancy to 4.76M MT with expected support from the new crop from the Center-South of Brazil. In the previous cycle, the surplus volume was indicated at 2.02M MT. The global surplus should occur even with the trend of increasing world consumption, which should be around 1% in 2022/23, due to the war in Ukraine and the impacts of the Covid-zero policy adopted by China, on 1.5 % of growth recorded in 2021/22. The consultancy also points out that the two surpluses in 2021/22 and 2022/23, added together, should still not offset the deficit of 9.43M MT recorded during the 2019/20 and 2020/21 harvests.
Brazil
Exports of Sugar From Brazil Surpassed December of 2021 (Dec 26)
Total shipments of Brazilian sugar in the month up to the fourth week of December surpassed the total shipped in the entire same month of 2021, approaching 2M MT . In November, sugar exports from Brazil marked a record high of over 4M MT, with Brazilians taking advantage of good prices and also a delay in the harvest of India, second global exporter after Brazil.
Brazil exported 1.94M MT of sugar this December (17 working days), surpassing the same period in 2021, with accumulated revenue of USD 821.57M, according to the Foreign Trade Secretariat (Secex), of the Ministry of Economy. In the last week alone, more than 41K MT were shipped. In the analyses of MT per daily average, sugar and molasses exports totaled 114.36K MT/day in the period, more than 35% higher than in December 2021 (84.50K MT/day). Shipment prices are almost 13% higher at USD 422.60/MT.
Sugarcane Milling in Brazil Increases at the Beginning of December, but Does Not Meet Forecast (Dec 26)
Sugarcane milling in Brazil spiked in early December on an annual basis as dozens of plants continue to operate this season after being forced to stop production earlier than expected due to bad weather a year ago. Still, milling in Brazil's central-southern region fell short of market expectations amid increased rainfall in the country's main sugarcane belt. Sugarcane processing increased more than sevenfold on-year to 5.61M MT, but analysts polled by financial information provider S&P Global Commodity Insights forecast it would reach 6.58M MT in the period.
Sugarcane Crushing in the Center-South Reaches 538.98M MT in the First Half of December 2022 (Dec 26)
Sugarcane crushing in the first half of December in the Center-South region totaled 5.61M MT, registering a significant increase in relation to the 769K MT processed in the same period last year. In the accumulated harvest, crushing reached 538.98M MT this year compared to 522.61M MT recorded in the same period of 2021, an advance of 3.13%. The crushing registered until the end of the first half of December of this year is even higher than the total processed in the entire harvest in 2021/2022 (524.1M MT).
Brazil Expects to Produce 4% More Sugar (Dec 27)
Brazil could produce 36.3M MT of sugar in the 2022/23 harvest, representing a 4.1% increase compared to the previous harvest, 2021/22, according to an assessment carried out by the Brazilian National Supply Company (CONAB). Production would come from Brazilian sugarcane harvest in the period. CONAB informed the increased sugar output could occur due to improved productivity of sugarcane crops and fairer sugar rates in the global international market. In addition to higher productivity, the company attributes the increase to total recoverable sugar (TRS) quality.
Sugar futures prices ended on December 27 with a significant drop on the New York Stock Exchange. The market resumed trading after the Christmas festivities following the exchange rate, in addition to Conab's recent crop estimate. The most traded month of raw sugar on the New York Stock Exchange fell 3.15% on the day, quoted at USD 447.98/MT (20.32 cents/lb), with a high of USD 462.75/MT (20.99 cents/lb) and a low of USD 445.99/MT (20.23 cents/lb). The London terminal will still remain closed on December 27.
Sugarcane Harvest 2023/24 in the Center-South of Brazil Is Estimated at 590M MT by Datagro (Dec 28)
The 2023/24 harvest (April-March) of sugarcane in the Center-South, the main sugarcane producing region in Brazil, should total 590M MT, close to the record of previous years, according to the 1st estimate by Datagro consultancy. The volume, if confirmed, will represent an increase of about 7% compared to the 2022/23 cycle in a more favourable climate. Considering the industrial yield at 141.20 kg ATR/tc, the total supply of ATR should grow 7.7% in the new season.
Oil Price Falls Sharply and Puts Pressure on Sugar Prices on New York and London Stock Exchanges (Dec 28)
Sugar futures prices fell on the New York and London stock exchanges on December 28. The market had oil pressure, in addition to the positive expectations with the crop in the Center-South of Brazil highlighted the day before by Conab. The most traded month of raw sugar on the New York Stock Exchange fell 0.79% on the day, quoted at USD 454.15/MT (20.16 cents/lb), with a high of USD 451.73/MT (20.49 cents/lb) and a low of USD 443.13/MT (20.10 cents/lb). In London, the first contract was down 2.87%, at USD 555.70/MT.
Sugarcane Crushing in Brazil Should Jump 28.8% In 10 Years, the Area Will Grow 12%, Predicts EPE (Dec 28)
Sugarcane crushing in Brazil is expected to increase 28.8% by 2032, to 751M MT, while the planted area will increase approximately 12% in the period, according to a study prepared by the Energy Research Company (EPE) and released by the Ministry of Mines and Energy. The projection considers important gains in productivity per hectare, while the sugarcane area will increase from 8.2M to 9.2M hectares. Of the total processed, 56% will be destined for the manufacture of ethanol, while the rest will go to produce sugar. EPE also cited the implementation of seven production units, adding 18.5M hectares and reactivation of plants with a capacity of 6M hectares.
Production of Sugarcane Should Grow by 1.9% In Goiás, Brazil (Dec 28)
The production of sugarcane ethanol in Goiás should reach 4.9B litres in the 2022/23 Harvest, a volume that represents a 6.4% growth in relation to the 2021/22 Harvest. The estimate is from the National Supply Company (Conab) and was disclosed ON December 27 in the 3rd Survey of the Brazilian Sugarcane Harvest. The follow-up report on the sugar and alcohol sector also brought the prospect of an increase in state sugar production by 2.6%, reaching 2.2M MT.
Sugarcane Harvest in Minas Should Grow by 6.7% With More Favorable Weather (Dec 28)
The more favourable climate throughout the sugarcane production cycle favoured the crop in Minas Gerais. According to the third estimate of the 2022/23 Sugarcane Harvest, released by the National Supply Company (Conab), production in the current cycle will be 68.4M MT, 6.7% higher than the volume of sugarcane registered in the previous harvest. This year, sugar production will be 11.5% higher, and that of total ethanol, 3.5% higher. According to Conab technicians, the average productivity in this 2022/23 harvest should be around 77.9MT per hectare, that is, a yield 3% higher than the average obtained in the previous harvest.
Sugar Recovers Ground in This 5th in Adjustments After Losses at the Beginning of W52 (Dec 29)
Sugar futures prices ended the session December 29 with appreciation on the New York and London stock exchanges. The sweetener market recovered ground on the day with movement to adjust positions, after losses at the beginning of the week. In addition, there was exchange support for quotes. The most traded month of raw sugar on the New York Stock Exchange rose 0.64% on the day, quoted at USD 447.32/MT (20.29 cents/lb), with a high of USD 450.62/MT (20.44 cents/lb) and a low of USD 443.79/MT (20.13 cents/lb).
Germany
North Rhine-Westphalian Farmers in Germany Harvested Seven% Fewer Sugar Beets Than in 2021 (Dec 25)
The North Rhine-Westphalian farmers brought in 4.33M MT of sugar beet in 2022 harvest. As Information and Technology North Rhine-Westphalia, as the State Statistical Office reports on the basis of the final results of the "harvest and business reporting", that was 7.0% less than 2021. However, the harvest volume was "only" 0.6% below the average of the beet volume harvested in the years 2016 to 2021. The yield per hectare was 6.8% at 79.9MT lower than a year earlier, but 2.5% higher than the average for the past six years. At 54.2K hectares, the area under cultivation for sugar beets was almost (−0.3%) as large as in the previous year.
United States
Sugar Resumed Negotiations on December 27 With a Drop (Dec 27)
Sugar futures operated with a moderate fall on the New York and London stock exchanges on December 27. The sweetener market resumed negotiations following the exchange rate, with appreciation of the dollar against the real, despite the rise in oil. Despite this, the level remains above USD 440.92/MT (20 cents/lb). At around 9:50 am (Brasília time), raw sugar had devalued by 0.76% in the main contract on the New York Stock Exchange (ICE Futures US), at USD 459.44/MT (20.84 cents/lb).
US Sugar Registers 4th Annual Gain (Dec 30)
Sugar futures contracts on the ICE exchange closed lower on December 30, the last trading session of 2022, but registered the fourth consecutive annual gain for both the raw product and the white product. Raw sugar prices ended with an annual gain of 6.1%, supported by the tight supply that should continue until the first quarter of 2023. White sugar prices, on the other hand, recorded an annual increase of 11.5%, also the fourth consecutive year of gains, accumulating an increase of 54.8% in the period.
France
A Bad Crop Can Reduce Sugar Beet Production in France (Dec 27)
France's sugar beet production is expected to fall by more than 7% in 2022 after a severe summer drought reduced crop yields, and the area planted could fall further next season as farmers switch to more profitable grain crops, beet growers said. According to its estimate for the 2022 season, producer group CGB expects the crop to reach 32M MT, which is in line with the French Ministry of Agriculture's forecast of 31.94M MT issued in early November, but well below last year's 34.5M MT.
Turkey
No sugar can be sold without bribes (Dec 27)
According to the news of Sadettin Inan from the Milli Gazete, Turkey was dragged into a heavy sugar crisis due to the wrong policies implemented, and had to import sugar for the first time in 24 years. While the sugar prices of Türkşeker were low (January 1-May 31, 2022), how much sugar it sold to sugar traders was kept from the public, trading companies that bought thousands of tons of sugar at low prices in this period made a big profit in a short time. While the period between January 1 and May 31 went down in history as a dark period in sugar, Turkish Agriculture, Livestock and Beekeeping Solidarity Federation (TAHAP) Chairman Mustafa Sarıoğlu made a shocking claim regarding this period and stated that they were asked to bribe them for high-tonnage sugar purchases.
Russia
The Ministry of Agriculture Called the Sugar Market in Russia Stable (Dec 27)
The Ministry of Agriculture assesses the domestic sugar market in Russia as stable and does not require additional regulation. At the same time, the Ministry of Agriculture may consider various options for regulating the food market, including the conclusion of price agreements based on the experience of 2020/21. The Ministry of Agriculture recalled that this season, the volume of sugar beet production increased to about 48M MT in bunker weight. To date, according to Soyuzrossahar, 38M MT of root crops have been processed, of which 5.2M MT of sugar have already been produced.
Sugar Producers in Russia May Again Be Required to Fix Prices (Dec 27)
The Ministry of Agriculture has warned the largest sugar producers about the risk of a new agreement that limits the price of this product. Such a development of the situation is possible if in the first quarter of 2023, the level of the wholesale cost of this product will be higher than USD 0.71- 0.75/kg (50–53 rubles). This was announced on December 26 by Deputy Minister of Agriculture Oksana Lut at a meeting.
Sugar Beet Breeding (Dec 29)
In 2022, the Krasnodar Territory made a significant contribution to strengthening the country's food sovereignty and continued to implement the most important agricultural tasks. More than 240 ha of sugar beet seedlings have been planted in the farms of the region, which will make it possible to obtain domestic seeds for half of the sowing area of this crop in 2024 and achieve a harvest of at least the current year, 10.6M MT. Good results have been achieved in the expansion of the reclamation complex. This is important given the dry weather of recent years. This year, 4.2K ha of reclaimed land were introduced.
Indonesia
The New Price List for Consumable Sugar in Indonesia (Dec 28)
The government has officially imposed reference prices for a number of basic and important food ingredients. These provisions are stipulated in the National Food Agency Regulation (Perbadan) No 11/2022 concerning Reference Purchase Prices at the Producer Level and Sales Reference Prices at the Consumer Level. For consumable sugar, producers are expected to purchase at USD 0.74/kg (IDR 11,500) in 50 kg sacks while consumers buy at USD 0.86/kg ( IDR 13,500) in modern retail and USD 0.93/kg (IDR 14,500) in modern retail in Eastern Indonesia.
South Africa
Sugarcane Farmers Rescued in the Nick of Time (Dec 30)
Industry players are hoping for a fertiliser boost by the government worth over USD 2.37M (R40M) that will be enough to help struggling sugarcane farmers in Mpumalanga get back on their feet. This follows a special visit to the province by the national minister of agriculture, Thoko Didiza, together with the South African Farmers Development Association’s (Safda) chief executive officer, Dr Siyabonga Madlala. During the visit, fertilisers and a cheque to the tune of USD 2.5M (R42.2M) were handed over to the Nkomazi sugarcane small-scale growers, which is about 1,400 farmers. According to Madlala, the donation by the government could not have come at a better time for these sugarcane growers who are barely coping with the high operational costs involved in sugarcane production.
Egypt
The Ministry of Supply in Egypt Begins the Local Sugar Production Season in Mid-January (Dec 29)
The local sugar production season will start in mid-January, and the Ministry of Supply aims to achieve complete self-sufficiency this season, after achieving 90% of its last season. The Supreme Committee for Sugar, the prices for the supply of sugar crops for this season are USD 44.46/MT (1100 pounds) of cane, and USD 40.42/MT (1000 pounds) per ton of beet, with the continuation of incentives for farmers, in order to encourage them to grow these important crops. The Ministry of Supply and Internal Trade, represented by the Sugar and Integrated Industries Company, seeks to produce about 1.1M MT of sugar through the new season, as it is intended this season to supply about 8M MT of sugarcane to produce from 850 to 900K MT of sugar, and to produce about 150MT of sugar from beets.
“Al-Tamween” Calls for Tightening Control Over Black Honey Factories During the Cane Season (Dec 29)
Major General Essam Al-Budaiwi, head of the Sugar and Integrated Industries Company, affiliated to the Ministry of Supply, called for tightening and tightening control over black honey and juice factories during the 2023 cane season, especially as they offer higher prices to buy the crop from farmers compared to the government, which negatively affects the quantities targeted by the state. Factories and juicers intend to buy cane from farmers during the new season at a price of USD 80.84/MT (2,000 pounds), compared to USD 44.46/MT (1,100 pounds) for the government supply price.
Vietnam
Importing Additional Sugar, but the Supply Is Still in Short Supply Compared to the Demand (Dec 28)
At the handing session, Deputy Minister of Industry and Trade Tran Quoc Khanh, Chairman of the Assignment Council said that on September 23, implementing the directive, the Council held a session to allocate sugar imports to the HNTQ with a total volume of 113K MT; in which, there are 79K MT of raw sugar and 34K MT of refined sugar. As a result, there were 7 traders assigned to HNTQ to import 109K MT of sugar in 2022; in which, 5 enterprises were assigned to import raw sugar from HNTQ and 2 enterprises assigned to HNTQ refined sugar. According to Deputy Minister Tran Quoc Khanh, in the crop year 2021/22, domestic sugar production is estimated at nearly 750K MT, an increase of only 8.3% compared to the 2020/21 crop year. With this limited increase, even with the addition of 113K MT of assigned tariff quotas at the end of September, the inventory of sugar from the previous crop year and a certain amount of sugar still imported from ASEAN are not subject to evasion, the total supply is still quite short compared to the total demand.
Bangladesh
Sugar Refiners Want to Set Price Based on Import Rates in Bangladesh (Dec 27)
Local sugar refiners suggested that its rates for the domestic market ought to be fixed based on the import price and other different components so that no losses are incurred. In a letter, the Bangladesh Sugar Refiners Association made the proposals to the Commerce Ministry and urged necessary steps. They also sought their effective role in price fixation of the essential item. They feared that refiners would face losses financially if the government took LC prices, release price and related components into consideration. It would discourage them from importing sugar, the letter mentioned.
