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
- Beet sugar deliveries are typically slow in July.
- Cane sector deliveries were on-pace.
- Sales of 2023/24 sugar remain slow.
The bulk refined sugar market was characterized by slow beet sugar deliveries as the trade kept a watchful eye on sugar beet and cane crop conditions during the week ended July 23.
Slow deliveries of bulk refined sugar continued for beet processors and some distributors, even intensifying during July in some cases. Beet sugar deliveries typically are slow in early July but tend to pick up later in the month ahead of the August-September period when supplies are tightest and before the heavier use fourth quarter. But one processor noted July deliveries were the lightest he has seen for some time. As a result, spot beet sugar supplies were available. Deliveries in the cane sector, which tend to pick up in July and August, appeared to be on pace with the recent 125,000-tonne raw sugar tariff-rate quota increase providing certain cane refiners adequate raw sugar supplies to meet July-September refined sugar sales commitments.
Deliveries of sugar to retail remained strong in comparison to the delivery of bulk sugar to food manufacturers. October-May deliveries of sugar to retail were up 5.6% from the same period last year compared to bulk deliveries down 4.6%, according to US Department of Agriculture data.
Spot prices for bulk beet and cane sugar were unchanged, with refined cane maintaining its hefty premium to beet sugar. It was thought both beet and cane sugar could be purchased below prices quoted by processors and cane refiners. At the same time, beet processors were not aggressive in lowering spot sugar prices until they have a better idea of how much sugar may be available before Sept. 30 from early harvest of the 2023 beet crop.
Sales of bulk refined beet and cane sugar for 2023-24 were slow with most business having been completed in March. Buyers who are uncovered or have only partial coverage were sensing some softness in the market and were willing to wait until beet processors seek to sell most of their remaining supplies after the beet harvest is underway. At least one beet processor is out of the market until October, another is selling selectively, and others noted slow sales at steady prices.
Most sugar beet crops are doing well but could use rain. The lowest rated beet crop was in Michigan with a good-to-excellent rating of 46% as of July 23, the lowest by far of any beet state. Indications were the crop needs rain and yields may have been negatively affected, but the crop isn’t as bad as indicated by the low rating. Trade sources said crops in other states were expected to be average or slightly above, depending on weather.
Nearby domestic and world raw sugar futures strengthened in part on concerns about the impact of the El Niño weather pattern on Asian producing regions, with gains capped by Brazil’s ongoing harvest and strong sugar production.
Distributors continued to note slow deliveries of 42% high-fructose corn syrup but tight supplies of glucose.
