Global sugar prices on the futures markets are being depressed by positively adjusted production expectations from various parties. This means that sugar prices have reached their lowest point in more than a year. If we look at the situation in the Netherlands, 22% of the planned beet area still had to be sown last week. In some parts of the Netherlands it is even 80%.
Since the end of last week, sugar prices have been on a downward trend that is continuing at the beginning of this week. Analysts write about various influences. Among other things, the expectation of market bureau Datagro, which positively adjusted the Brazilian sugar production forecast for the central and southern regions, is putting pressure on the price. The production forecast was raised from 40,45 million tonnes to 41,6 million tonnes. As a result, there are fewer concerns about a global sugar shortage.
Early this week, futures prices fell to $410,72 per tonne for New York and $550 per tonne for London. For New York this is the lowest point since January 2023, for London the lowest point since February 2023. Yesterday, sugar prices did rise slightly again. Analysts write that this could be due to the US dollar falling in value, while the Brazilian Real rose in value.
Wetness is playing tricks in the Netherlands
If we look at the situation in our own country, the wetness of the past period has done little good for the Dutch beet area. It makes sowing more difficult. Still 22% to go, Cosun wrote last week. At that time, Walcheren was still at only 20% and still needs to cover the vast majority. This percentage is probably now considerable, given the nice weather conditions in recent days.
The consequences of the later sowing and the volume of sugar produced at the end of the season remain to be seen. An insider reports that sowing started later than average, just like last year, but there is a chance that more will be sown this year.