Analysis Sugar
Sugar prices under more pressure
The sugar prices have come under further pressure, partly due to more favorable news for the Brazilian sugar cane cultivation. The European beet yield has been adjusted upwards, but the Dutch sugar giant Cosun actually lowered the yield.
The downward pressure on the international sugar market continues. Yesterday, a ton of sugar was quoted at $489.43 on the ICE exchange in New York, and $562.9 per ton for London.
The latest figures from the Brazilian Unica also play a role in the pressure on sugar prices. In the first two weeks of October, 8% more sugar was produced in the central southern region of Brazil, amounting to 2.44 million tons of sugar. Brazil is the largest producer in the world and therefore influences world sugar prices. Brussels also points to recent rainfall in Brazil as a factor in the current decline. On the other hand, the rain could disrupt plans as it may delay sowing for the upcoming season. The Committee also mentions a higher than expected sugar (cane) yield.
This week we will further focus on the European beet yield. In the latest JRC Mars Bulletin from the European Commission, the yield expectation was 75.4 tons per hectare, an increase of 1% compared to the September expectation and 3% compared to the five-year average.
Situation in own country
On October 30, the Dutch sugar producer Cosun published an update on the status of the beet campaign. Yield varies from barely 30 to more than 100 tons of sugarbeets per hectare. This is partly due to the wet winter as stated by Cosun. Growth in the first period of the campaign was also lower. The yield forecast has been revised downward by 2 tons, to 76.5 tons of beets per hectare. This is still higher than the European forecast of the JRC Mars Bulletin, but they specifically estimate the Dutch yield at 82 tons per hectare.
The sugar yield per hectare according to Cosun is 12.5 tons, 0.3 tons lower than previously expected and 1.3 tons below the five-year average.
