This update is from Sosland Publishing Co.’s weekly Sweetener Report. This update is from Sosland Publishing’s Sweetener Report. For more information and subscription details, CLICK HERE.
Insight Focus
- Sugar markets were quiet as traders head to the Sweetener Colloquium.
- Pricing indications for 2023/24 were unchanged.
- Meetings at the Colloquium could lead to a flurry of business towards the end of this week.
The cash sugar market mostly was quiet during the week as traders prepared to head to the International Sweetener Colloquium in La Quinta, Calif., Feb. 26-March 1. Some coverage for 2023-24 was added, while spot market activity was nil.
Pricing indications for 2023-24 were unchanged. Beet sugar was offered at 52½¢ a lb f.o.b. Midwest, and cane sugar was offered at 54¢ to 55¢ a lb f.o.b. Southeast. Large users could buy sugar below those levels. Some cane refiners indicated they may enter the market in the 52¢ to 54¢ a lb range f.o.b. Gulf.
Most business for 2023-24 was for January-September 2024 or for calendar 2024 as the October-December 2023 quarter was essentially covered. Inquiries from buyers were steady, but some held off finalizing sales until the Colloquium or shortly thereafter. Some beet processors said sales were ahead of last year’s pace, with indications that some may be 40% or more sold for 2023-24.
Sales for the current marketing year were nil. Beet processors had no sugar to offer unless buyers failed to take contracted supplies, which could be resold at higher levels. Some processors opted to build up depleted stocks rather than resell undelivered sugar. Spot prices were steady. Cane sugar mainly was available from one major refiner at 62¢ a lb f.o.b. at all locations. Beet sugar was nominally priced around 60¢ f.o.b. Midwest.
Sugar deliveries into February appeared to be mixed. Some processors said draw against contracted supplies was slower than expected while others noted good draw that was meeting expectations.
The US Department of Agriculture at is Agricultural Outlook Forum projected 2023-24 US sugar production at 9,324,000 short tons, raw value, up 1% from forecast 2022-23 production of 9,231,000 tons. Beet sugar production was projected at 5,165,000 tons, up 1.3% from 2022-23, and refined cane sugar outturn was projected at 4,159,000 tons, up 0.7%. The beet sugar projection includes a 19,500-acre reduction due to the closing of the beet plant in Sidney, Mont., the USDA said.
If realized, beet sugar production would be the second highest on record and cane and total sugar production both would be record high.
Total imports in 2023-24 were projected at 3,255,000 tons, including 1,831,000 tons of tariff-rate quota imports, 250,000 tons of other program imports and 125,000 tons of high-duty imports. Imports from Mexico were set at 1,049,000 tons to balance for a 13.5% ending stocks-to-use ratio.
Sugar deliveries for food use in 2023-24 were projected at 12,594,000 tons, up 0.8% from 2022-23 and in line with the projected population growth rate.
Corn sweetener business was routine except for major logistics disruptions from winter storm Olive across much of the northern United States. Some buyers still seeking supplies for 2023.
