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Insight Focus
- Prices unchanged this week amid tight supplies.
- Beet supplies from producers only available in dribs and drabs.
- Sugar cane harvests continue in Louisiana and Florida.
Sugar prices were unchanged last week amid ongoing tight supplies and slow trading.
The USDA forecast the carryover of sugar on Oct. 1, 2023, at 1,707,000 short tons, raw value, up just 6,000 tons from November but down 107,000 tons from 2022, with a stocks-to-use ratio of 13.5%. Changes from November for 2022-23 were a 66,980-ton reduction in beet sugar production partially offset by a 20,000-ton increase in cane sugar, and a 52,000-ton increase in imports from Mexico.
Cash sugar prices were steady with a firm tone. Beet processors were out of the market for the 2022-23 marketing year. Some cane refiners offered sugar based on unfilled capacity in the coming months.
Beet sugar prices were nominally 59¢ to 60¢ a lb f.o.b. Midwest with supplies mainly available from distributors as only “dribs and drabs” were available from processors if production exceeded their sold-out supply situation. One cane refiner continued to offer spot sugar at 68¢ a lb f.o.b. through Dec. 31 and at 61¢ a lb f.o.b. for calendar 2023 at all locations. Some cane refiners were sold out for 2022-23, and others were well sold.
Sugar cane harvests continued in Louisiana and Florida, with planting also underway in the latter.
Beet processors were running strong with cold weather in northern areas keeping outside piles sufficiently frozen.
Processors said deliveries of contracted sugar were slower than earlier in the fall, which was typical during the holiday season.
New sales for 2023-24 also were in a winter “lull” and aren’t expected to pick up until industry participants gather at the International Sweetener Colloquium in late February. Some indicated they will limit the volume of potential sugar production they will sell early for 2023-24 after the tight beet sugar situation this year in which one processor declared force majeure and others are out of the market after the 2022 beet harvest came in below expectations in some areas.
A consideration for 2023-24 sales is beet planted/harvested area in 2023. Winter meetings were underway with growers and will continue after Christmas. While growers are committed to minimum planted area as part of their cooperative memberships, some have tended toward the minimum in the past couple of years due to high prices for other crops.
Some sales for 2023-24 were occurring, but most refiners and processors were not quoting prices for the next marketing year, and few buyers were seeking quotes amid current high prices. Recent offers for 2022-23 were 51¢ a lb f.o.b. Midwest for beet sugar and 52.50¢ a lb f.o.b. Southeast for refined cane sugar.
