- Central America has exported 1.15m tonnes of raw sugar so far this season.
- Just 39k tonnes of this shipped in June (down 165kmt from May) as stocks are low.
- High freight costs may also have weakened demand.
Central American Raws Shipments Fizzle Out
- Central America has exported 1.15m tonnes of sugar so far this season, down 200k tonnes year-on-year.
- This has been shipped by Guatemala (421kmt), El Salvador (363kmt), Nicaragua (207kmt), Costa Rice (111kmt) and Honduras (40kmt).
- Just 39k tonnes of this sugar sailed in June, down 165k tonnes month-on-month.
- The market’s been quiet ever since the March Expiry’s delivery window passed (15th May).
- The March/May spread incentivised exports early in the season, meaning Central American suppliers now have little left to ship.
March / May Spread (Available in the Interactive Section)
- High freight costs also seem to have weakened demand.
- In the last nine months, bulk and container freight costs have both surged alongside demand.
Where Has the Sugar Gone?
- South Korea remains the stand-out buyer of Central American raws this season and has taken more than 438k tonnes to date.
- Thailand’s poor cane crop has forced Korean refineries to look for other origins.
- We’ve also seen some more surprising destinations import, namely Malaysia (76kmt) and New Zealand (47kmt).
- These aren’t natural homes for Central American sugar, given how far apart they are from each other.
- Again, though, Thailand’s poor availability has forced more origins to turn to Central American suppliers.
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