The sugar beet harvest in both Europe and the United States is in full swing. The yields are not so bad despite the drought. The payout price, on the other hand, is good, as with the French sugar giant Tereos. The sugar market is currently somewhat lower.
The forecast was that the drought and heat would lead to mediocre sugar beet yields in various parts of Europe. However, that seems to be not so bad. Although the yield sometimes lags behind, the sugar content is also higher on average than in other years. According to the October edition of the European Commission's JRC Mars bulletin, an average of 73,2 tonnes of beets per hectare is harvested, just 2% lower than the five-year average. The harvest in Germany is disappointing, with 12% less yield per hectare than in other years, according to the report. Italy and Spain also achieve significantly lower yields. Poland is heading for a normal beet harvest. The Netherlands appears to achieve reasonable yields with an above-average sugar content. For example, the sugar content increased from 16,4% to 16,9% in the fifth week of the beet campaign, according to Cosun Beet Company. The high temperatures contribute to this and may also cause higher sugar levels elsewhere in Europe in the coming weeks.
Smooth harvest in US
The sugar beet harvest is also going well in certain regions in the United States, according to the USDA's weekly agricultural report. The beet harvest is far ahead of other years and is almost at its end. In North Dakota, for example, the beet harvest is as good as ready, while normally around this time of year it is 77%. On average, the beet yield is in line with the long-term average, just like the sugar content.
Tereos increases beet price by 40%
The processing of sugar beets is in full swing and sugar processors are increasingly providing clarity about this year's prices. Tereos, France's largest sugar and ethanol group, has announced the price paid per tonne for this season, following its competitors. The significant price increase is the result of the rising sugar markets in Europe and is desperately needed to keep sugar beet cultivation alive. For the 2022 harvest, a price of €41,85 including premium is paid, compared to €29,90 per tonne last season. That is an increase of almost 40%. Previously, competitors Cristal Union and Südzucker in France already announced their prices. Both pay around €35 per tonne of sugar beets.
The sugar beet yield in France is probably several percent below the five-year average, both Tereos and the French agriculture ministry reported.
Things are starting to get a bit messy on the sugar market. The futures markets ICE (Chicago) and Liffe (London) show a significant decline. This has to do with global sugar production. Production is currently getting underway in India, which is heading for a record sugar volume this season. In addition, production in Europe is also continuing well, despite earlier reports of lower yields. Only in Brazil, the second largest sugar producer after India, did sugar production become somewhat more difficult. The latest figures from sugar industry group Unica now show good figures over the past few months. Both the listing on the ICE and the Liffe are showing a decline this week, after the price seemed stable last week. On Wednesday, the Liffe recorded a price of $522 per tonne of white sugar, up from $555 per tonne last week. The ICE shows a similar decline. Last week, $415 tonnes of white sugar was quoted on the board for the March contract. Last Wednesday it was $397 per tonne.