Analyst Insights

CS Brazil – Sugar or Ethanol? 7th June 2020

• India’s sugar exports decreased by 268k tonnes in June.
• This is primarily due to a reduced offtake from both Indonesia and Iran.
• The domestic mills have exported 4.7m tonnes of sugar since the start of October out of a 6m tonne export quota.

Daily Market Price Update and Commentary 6th July 2020

Daily Market Price Update and Commentary 3rd July 2020

The BDI made some tremendous gains in the last month, capturing further the momentum which had surfaced in the Capesize market at the end of May. Settling at 1,799pts on the 30^th June, the BDI recorded a +350% increase in value over the last 30 days. This dramatic return to form for the dry bulk sector has in the main been driven by very strong demand for Capesize vessels shipping ore cargoes to China, witness the 900% gain in value of the Cape 5TC index price over the last month.   

• May container exports totalled 290kmt;
• It is the strongest May since the start of the series – i.e. 2007.
• Yemen is so far the top destination this season, followed by Angola;

• The Czapp News Feed now gives you free access to all the relevant news for Sugar, Ethanol, Grains, and Dairy.
• You can now personalise what notifications you receive from us, so you’ll never miss the updates that matter to you.
• The redesigned Futures Market Data dashboard is your new one-stop-shop for the raw sugar futures, white sugar futures, and the white premium.

• The No.11 futures have retreated slightly from 12c/lb and remain within negative the export margins.
• The No.5 futures are also down this week, after hitting a high of $394.90/mt in June.
• The strengthening USD/INR FX has put some pressure on the export margins this week.

• Thailand is in for another dry year following its disastrous 2019 cane crop.
• This means cane yields won’t improve by much this year.
• Thai sugar production will fall once again to 7.5m tonnes; half of what it was two seasons prior.

Daily Market Price Update and Commentary 2nd July 2020

• Pace of nomination have picked up this week in CS;
• Around 700kmt of raws were added to Q3 line up – registered nominations for July and August;
• June exports, affected by rains at the end of the month, totalled 2.2mmt.

Two weeks ago we said the common sense was returning to the molasses market and that certainly seems to be holding true.

The latest news is the export ban on cane molasses from the Indian State of Maharashtra has been lifted and exports can resume. What does this mean for availability and prices?