Where is the sugar price heading? The price of white sugar fell in May by € 4,00 to € 375,00 per tonne. Within the EU, the price difference between the Benelux and some southern countries has risen to almost €100 per tonne.
The Netherlands Enterprise Agency (RVO) reports this in a newsletter about the sugar market.
Stock decreased quickly
The trade deficit in white sugar is 3 times greater than in the first 9 months of the previous season. This has to do with imports that have risen sharply, especially through Spain and Italy, and exports that have fallen. The Benelux in particular is experiencing the consequences of the decreased export volume.
However, the rapidly increasing trade deficit is not (yet) causing prices to rise in Western Europe. Apparently there is still plenty of stock and the Brazilian currency has plummeted in value. Thanks to the much cheaper real, Brazil, the world's largest sugar producer, now exports much more sugar. This puts pressure on prices worldwide and on the liberalized European market.
Constant supply
Harvest expectations in the European Union are now also starting to play a role in the sugar market. There are no indications of major fluctuations in supply compared to the five-year average. The JRC Mars monitoring report from last Monday calculates a few percent increase in yield per hectare.
But the EU area is a few percent smaller than last year. These can be balanced out, meaning that the supply of white sugar in the European Union will probably not increase or decrease much compared to the long-term average.