According to European figures, both the sugar beet acreage and sugar production are falling. New figures for the 2018/2019 season show a more complete picture of the disastrous consequences of the extreme year 2018. However, it does not change the situation on the global market.
In the 2017/2018 season, the 20 European beet-growing Member States harvested 21,3 million tons of sugar (from 1,67 million hectares). The most recent estimate for the 2018/2019 season is 17,5 million tons of sugar from 1,64 million hectares.
Red numbers
Virtually all countries are experiencing lower production and decreased acreage. Only in Poland did beet cultivation increase in area last year. Spring started late, followed by an extremely dry summer. For example, both Germany and France have produced more than 1 million tons less sugar.
Compared to the previous estimate, which the European Commission published in December, the figures have been considerably corrected. Production is estimated to be 663.000 tons lower and the area has also been corrected by 0,4%.
World supplies are falling
Worldwide, production and consumption are reasonably in balance. Analyst firm 'FO Licht' expects that a surplus of approximately 400.000 tonnes will arise. For the coming season (2019/2020), consumption is expected to be 2 million tons higher than production.
The lower European harvest is also clearly noticeable in the export figures. Exports between October and March were higher than in this period a year ago, but total exports are lower this season (-1 tons). France is the largest exporter, followed by Belgium. The European sugar stock on February 900.000 was 1 million tons lower than was the case a year earlier.
European price stable
The realized sugar price remained unchanged about January stable at €312 per tonne and the London futures market was trading at over €300 per tonne. By the way, the Netherlands managed to achieve a higher price, just like France: €440 per tonne. These are the prices of the long-term supply contracts. Sugar prices have fallen worldwide.
The European Commission expects the sugar beet area to decrease further in the coming season. In addition, the loss of seed coating with neonicotinoids can cause significant yield fluctuations. The effect is still unclear. In Brazil, the sugar cane harvest has slowed and prices are low. India expects a good harvest. Sugar cane sugar is heavily subsidized there, which worries the global market.