Tag Archives: beet sugar

Sugar prices shaken by earthquake

ICE raw sugar futures slid by over 7% to 25.65 cents per lb, the lowest this year on selling following the Japan earthquake and nuclear fears.  This is some way off recent 30 year highs.  Demand is likely to be impacted in the world’s third largest economy.  Meanwhile May white sugar also fell $39.70 to $667.10 per tonne.  The fall in prices which has little to do with the valuation of sugar may pave the way for physical buyers to step in.

 

Advertisements

Russian raw sugar imports down in February despite bad beet harvest

Imported raw cane sugar to Russian refineries dropped in February relative to 2010 in anticipation of the cut in duty on imported sugar says the Russian Sugar Producers Union. In late 2010 import of raw sugar by Russian refineries had been up following a bad beet harvest. The bad harvest was due to drought.

Sugar refineries in Russia refine beet sugar during the beet season and then once the beet season is over, in February, refine cane sugar.

German sugar demand up but its EU quota unchanged

Germany produced 3.64 million tonnes of white sugar during the 2010/11 season according to the German sugar industry association WVZ, down from the 4.2 million tonnes produced during the 2009/10 season.  Bad weather reducing sucrose content was to blame.  Initially a heat wave in the summer, followed by late rains and then a very cold winter impacted the crop.  The 2010/11 season is now complete.

German sugar supplies stand at 3.86 million tonnes which is almost 1 million tonnes above Germany’s EU quota of 2.89.  The EU sets quotas for sugar production which is subsidized across the EU.  Above quota sales are restricted to industrial use such as ethanol production.

Imports into the EU are lower due to higher world sugar prices making other destinations more attractive.  German demand for sugar is likely to increase following the government’s decision to increase the percentage of ethanol blended into gasoline in Germany.  This is likely to also increase the size of the German beet crop during the 2011 season which commences in the winter.

Ukraine to cancel subsidies on sugar beets

The National Association of Ukrainian sugar producers (Ukrtsukor) announced that the Ukrainian government has proposed cancelling subsidies to farmers growing sugar beets.  The subsidy was 500 hryvnia or $63 in 2010 and the association had hoped for an increase to over 1000 hryvnia.

Minister of Agriculture Mykola Prysyazhnyuk confirmed that this was the government’s aim.

 

Russian raw sugar imports down for 2011

Russian raw sugar imports are expected to be down for 2011 to 1.9 million tonnes from 2.1 million tonnes in 2010.  Domestic production of beet sugar is likely to be at a historical high in the region of 4.2 million tonnes.  Russia recently decided to cut tariffs on raw sugar imports to $50 effective from March. A move that may see a temporary slowing in imports until the tariff becomes effective.

High domestic beet sugar production may result in imports slowing in the second half of the year when further downward pressure on domestic prices is expected.

Monsanto gets green light on beet sugar

The United States Department of Agriculture (USDA) has permitted Monsanto to proceed with the planting of genetically modified beet.  Monsanto’s GM sugar beets are resistant to herbicides aimed at eliminating unwanted weeds.  The USDA has granted the approval on a temporary basis until an environmental impact assessment is complete.

The aim is to avoid a drop in beet sugar production of up to 20% of US sugar.  This amounts to approximately 1.5 million tonnes.  Beet sugar production accounts for 50% of US sugar.