Sugar quotations have fallen somewhat in recent days, but overall they have shown an increase from the end of May. However, not all signals are green for a further increase in prices. In Europe, sugar imports from Ukraine are expected to decrease now that import duties on sugar will be levied again this month.
Sugar prices have fallen again since the end of June. At the time, London's price was at a high of $598,40 per tonne and New York was trading at $447,54 per tonne. Yesterday the London quote was at $560,70 per tonne. New York fell to $443,79 per tonne. The bigger picture shows a stagnant increase, starting at the end of May.
European sugar exports and imports
The improved sugar production in Europe from the 2023/24 beet harvest continues to be clearly reflected in the European figures on sugar imports and exports. This after 2022/23 sugar production was much lower for various reasons, including drought. Exports from Europe now remain in line with the 2021/22 season and import volumes have also returned to normal. A total of 16 million tons of sugar has been imported up to June 1,19, compared to 2,2 million tons of sugar at the same time last season. Exports have increased again and are even above average compared to other years. Exports amount to 1,05 million tons, while the five-year average is much lower at approximately 600 tons. The United Kingdom is the largest customer with a share of 16%, followed by Israel with 11%, according to figures from the European Commission.
Europe's sugar imports from Ukraine amount to 475.000 tons in the period from October to June 24 this season. Large volumes have also been imported in recent months, but this will decrease significantly in the coming months due to new trade rules between Ukraine and the EU. These apply to seven agricultural products, including sugar. For example, there is a suspension of exports upon reaching a certain export volume (which has now been reached), but also tariff quotas, which have been in force since July 2. This should prevent excessive export volumes of these products from disrupting the EU market.
More rainfall expected in India
The Indian Meteorological Department announced at the beginning of this week that the country has received above-average rainfall. India is the second largest producer of sugar in the world. Heavy rainfall is also predicted for next week, spread across the country. This could have been good for cane sugar production and could have had a downward effect on sugar prices. On the other hand, heavy rainfall causes many problems in the country.
The latest biweekly production figures from the Brazilian sugar association Unica were good. Nearly 49 million tonnes of sugar cane were processed in the central-southern region in the first half of June. That is 20,5% more than last season. From the start of the season (April 1) to mid-June, production increased by 13,3% to 189 million tons. This could have a downward effect on sugar prices.