Market Briefing: Sugar -17 July 2021

– Brazil’s CS crushed 45 million tonnes of sugarcane in the second half of June, + 4.4% y/y
– Indian sugar mills have exported 4.75 million tonnes so far in 2020/21
– USTR to reallocate 76,571 tonnes of sugar to several exporting countries

Production

– Mills in Brazil’s Centre/South (CS) crushed 45 million tonnes of sugarcane in the second half of June, up 4.4% on the year, industry organization Unica said. Combined with slightly higher industrial yields this allowed sugar and ethanol output to rise by almost 6% on the year to 2.9 million tonnes and 2.1 million cubic meters, respectively. Despite rises in late June, the 2021/22 season continues to trail last year. Sugar production is down 8% while that of ethanol is 4% lower.
– Indian sugar production in 2021/22 (October/September) will remain flat at around 31 million tonnes against 30.9 million in the current year, industry body the Indian Sugar Mills Association (ISMA) said.

Demand

– Indian sugar consumption in 2020/21 is put at 26 million tonnes and exports will reach 7 million tonnes, an all-time high. As a result, sugar opening stock at the start of the 2021/22 sugar season is expected to be around 8.7 million tonnes, the lowest in the last four years and down 2 million on the year.
– Pakistan’s Minister for Finance and Revenue Shaukat Tarin, ordered a procurement of 100,000 tonnes of sugar within one month to ensure strategic reserves of the sweetener in a meeting of the National Price Monitoring Committee.

Trade

– Indian sugar mills have exported 4.75 million tonnes, white value, so far in the ongoing 2020/21 (October/September) marketing year, trade body All India Sugar Trade Association (AISTA) said. Of the total exports undertaken so far, 1.58 million tonnes went to Indonesia, followed by Afghanistan at 582,776, the UAE at 447,097 and Sri Lanka at 363,972.
– The US federal government reallocated to other countries some of its lower-tariff sugar import quotas as it tries to guarantee supplies in the domestic market and rein in soaring local prices. The US Trade Representative (USTR) said it was reallocating 76,571 tonnes of sugar (raw value) to several exporting countries, with the Dominican Republic and Brazil receiving the largest shares.

Price

Raw sugar futures in New York ended lower for the third straight day by Wednesday (July 14), as market observers expect only limited damage by a recent frost wave in Brazil. Dealers said that physical demand remains weak because of high freight costs and sluggish consumption. October raw sugar declined 0.30 cents to 17.45 cents per pound, extending its decline from a four-month peak of 18.49 cents set last week.

Source: https://vietnamentrepreneurs.com/market-briefing-sugar-17-july-2021/