Analysis Sugar
Higher yields further depress sugar market
The sugar prices are coming under more pressure. New figures from the Brazilian Unica play a role here, as production has recovered somewhat compared to last year. Price-depressing news also comes from India, as well as the European sugar beet yield putting pressure on the market.
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. This brings the production from the beginning of the season (which started on April 1) to 1.9% above the level of the same period last year.
Just before the weekend, a ton of sugar was quoted at $488.10 on the ICE exchange in New York, and $566.20 per ton for London. Yesterday, New York quoted $484.13 per ton, London $560.20 per ton. Prices have been under pressure since mid-September.
The sugarcane processing in the relevant Brazilian region amounted to 33.83 million tons in the first two weeks of October, which is 2.7% higher than the same period last year. From the beginning of the season, the processing was 2.4% higher, amounting to 538.8 million tons of sugarcane.
More Indian sugar
India is expected to produce more sugar by 2024/25, according to the Indian Ministry of Agriculture. It is now estimated at 33 million tons, covering October to September, as reported by The Financial Express. The quantity is higher than the 32 million tons from the year 2023/24. News about the harvests of Brazil and India, belonging to the largest producers, usually have an impact on world sugar prices.
Europe
News closer to home is about the European sugar beet yield expectation. In the latest JRC Mars Bulletin from the European Commission, the yield expectation has been revised upwards to 75.4 tons per hectare. This is 3% higher than the average of the last five years, and 1% higher than the September expectation.
