World market - Sugar Market and Sugar Industry: Overview and Trends - Fork Cast

Forecasts of low sugar production levels in Cuba due to the economic crisis have caused difficulties for rum producers. Resumption of work is expected at only one of the 25 plants, and production volume will be significantly lower than the 2019 level. The decline began after the collapse of the Soviet Union.

On the New York Stock Exchange, the price of world sugar #11 fell by 0.26 to 19.36 (-1.33%), while on the London Stock Exchange, white sugar #5 decreased by 4.20 to 555.70 (-0.75%). This is due to the forecast of a sugar surplus in the global market next year, with an expected +182 thousand tons in 2024/25.

China is implementing drones for smart agriculture. Experienced pilots control fleets, treating crops with pesticides. In Bozhou, 3,000 drones boost production by 25% and assist in logistics. According to plans, by 2027, 10,000 drones will cover 4 million hectares of fields.

The increase in precipitation complicates the operation of Brazil's export ports, causing delays in loading ships with soybeans, corn, and sugar. Heavy rains and high demand worsen the issue, leading to an increase in waiting time up to 33 days and a delay in sugar deliveries.

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.