World market - Latest Sugar News - Fork Cast

Production of sugar in India may decrease due to lack of rainfall, which could lead to sugar imports in 2024. The low productivity in Maharashtra and Karnataka raises concerns about export bans and the potential for India to become a net sugar importer. The production decrease could amount to 26.9 million tons, while domestic consumption is on the rise.

Prices for sugar have risen: SBK24 futures closed at +0.27 (19.54; +1.40%), ICE №5 SWQ24 rose by +9.60 (568.90; +1.72%). Conab reduced the forecast for sugar production in Brazil for the 2023/24 season, but increased the forecast for ethanol production.

Trading of July sugar in New York ended with a decrease, caused by the strengthening of the dollar and a forecast of increased production in Brazil.

At the same time, in India, there is a reduction in sugar production due to the closure of factories.

The ISO conference highlighted a growing interest in sustainable fuels due to the pandemic. High pollution levels affect COVID-19 mortality. The demand for ethanol is increasing, and bioethanol production could grow tenfold. Sugar consumption is decreasing, impacting the market and exports. According to Plinio Nastari's estimates, sugar production in Brazil is expected to reach a historical record.

Prices for the world sugar No. 11 have decreased by 3.59%, and for London white sugar No. 5 by 2.44%. The reason is the forecast of rain in Brazil, which eased concerns about drought and stimulated futures sales.

The Brazilian agency Conab predicts a 32% increase in sugar production, reaching 39.33 million tons. Ethanol production is expected to decrease by 14% to 30.56 billion liters. Sugar exports have increased by 70%.

In Germany, a yellowing virus affecting sugar beet crops has been detected, causing Sugar Beet Root Syndrome (SBR). The disease has spread in the southwest of the country, aided by a mild winter. Producers are demanding support from the authorities. France has already presented a plan to assist its farmers.

Last week, sugar futures for March closed higher, driven by a decrease in production in Brazil. Prices rose slightly due to a 16.2% decrease in production, reaching 2.829 million tons. However, the price increase was limited by the expected production growth of 1.5% by the 2024/25 season.

The sugar producer Cristal Union from France predicts a 30% reduction in sugar beet yield due to diseases and drought. The processing level will decrease by 20-30%, while production will increase by 150 million euros.

The French government has allowed the use of pesticides to save the crop.

Prices for sugar in New York and London fell in the middle of the week due to forecasts of rain in Brazil, which reduced concerns about drought. It is expected that showers will last for a week in the main sugar-producing regions of the country.

Production of sugar beet in Iran will increase by 50% in the current crop year. The Ministry of Agriculture plans to improve agricultural production with the "Growing Scheme" program. The country aims to ensure 90% food security by increasing efficiency in agriculture.

In the spring in the UK, sugar beet producers will not use neonicotinoids due to the reduced risk of virus yellows. British Sugar anticipates a reduction in sugar production by up to 900 tons due to the late appearance of aphids. In 2021, it is planned to grow the crop without the use of neonicotinoids.