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
- American refined sugar deliveries remain slow.
- Sellers are not lowering offers.
- Many are watching beet crop progress to see if the harvest will be as expected.
Weather in sugar beet growing areas, slow deliveries of contracted sugar and plunging raw sugar futures set the tone in the cash sugar market during the week ended June 30. Spot and forward cash sugar prices were steady.
Slow deliveries of bulk refined sugar continued to add available spot supply, but sellers in most cases were not aggressive (as in lower pricing) with offers. Some beet processors were waiting on further development of the 2023 beet crop to see if some of the spot sugar may be needed later in the year.
Focus is on the 2023 beet and cane crops, and ongoing sales for 2024. Most major users are covered, but some have held back, anticipating weaker prices in October when beet sugar sellers typically re-enter the market to sell the balance of prospective production once harvest begins in earnest. Since some beet processors stopped selling sugar earlier than normal (less of prospective 2023-24 production) this year, more sugar than usual may be available in October.
Weather will be key throughout the summer to determine when beet harvest will begin. Sugar beet condition ratings as of June 25 mostly were unchanged or lower from a week earlier and were mixed compared with a year ago, but crops in several areas needed timely rain. Michigan is being closely watched as dry weather is most severe there compared with other states. Sources indicated some acres were in jeopardy of abandonment unless timely rains are forthcoming. Harvest may be delayed in Michigan due to delayed growth amid the lack of rain.
The Louisiana sugar cane rating improved in the latest week, but the crop there also needed rain. The severe heat in Texas has not been a factor in Louisiana.
Bulk refined beet and cane sugar prices for 2023-24 were unchanged amid uncertainty about the beet crop and with buyers not yet covered willing to wait until October to add coverage. Two beet processors currently were out of the market at least until October. Other processors indicated slow ongoing sales for next year. One West Coast distributor indicated multiple calls offering beet sugar for 2024, but he was not a buyer at the lofty price levels offered.
Sharply lower No. 11 and No. 16 raw sugar futures prices, mostly reflecting fresh supply from Brazil and an easing in global demand, have so far had no impact on US refined sugar prices. The declines have made high-tier imports cheaper, which in some cases already were below spot offers for refined cane sugar.
The US Department of Agriculture in its June 30 Acreage report estimated 2023 sugar beet planted area at 1,128,500 acres, up 1.6% from 1,110,800 acres in the March 30 Prospective Plantings report but down 2.7% from 1,159,500 acres in 2022.
Distributors continued to note slow deliveries of 42% high-fructose corn syrup with ample supplies available on the spot market. Supplies of most other corn sweeteners remained tight.
