Analyst Insights

Daily Market Price Update and Commentary 31st July 2020

Daily Market Price Update and Commentary 30th July 2020

• This week, 700kmt were nominated in CS.
• July raws CS line up stands at 2.7mmt, with 2.5mmt sailed to date;
• August line up stands at 2.75mmt.

• The No.11 futures remain well below the 13c/lb range; raw sugar export parity should stay in negative territory for some time.
• The No.5 futures have lifted this week, keeping Indian white sugar exports in the green. 
• The strengthening USD/INR FX has reduced the attractiveness of exports this week.

• The white sugar price has jumped $32/mt over the past fortnight as the global supply tightens.
• Thailand’s 2020/21 crop will be another poor one with cane acreage being lost to cassava.
• The impact of Beet Yellows Virus on the EU crop is raising concern. 

 In our update two weeks ago we said it had been a quiet few weeks in the molasses market, this has continued to be the case.  

Around a month ago it did appear there were a lot of changes and news that could affect the molasses market and pricing; the lifting of the Maharashtra molasses export ban, better forecasts for Indian production, hope that Thai production could recover and potential recovery in demand if prices eased.   

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Daily Market Price Update and Commentary 29th July 2020

• Venezuelan sugar consumption has fallen for five successive years.
• This is because of the collapse of the economy, but also because the population has shrunk by 15% in that time as people emigrate.
• Despite this, sugar production won’t meet consumption this year as mills cannot access sufficient funding to operate.

• Demand for grape juice concentrate is strong due to the high price of apple juice concentrate.
• And after good crops across the board, there should be sufficient stocks to satisfy demand until the start of 2021.
• This is despite the fact Argentina, one of the larger grape producing-regions, suffered a year-on-year production decrease of 25%.

Daily Market Price Update and Commentary 28th July 2020

CS Brazil – Sugar or Ethanol? 28th July 2020