Sugar: Prices are approaching record low

September 5, 2017 at 11:41 AM , Der AUDITOR
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FRANKFURT. In the EU, this year’s production is expected to increase considerably. Market players reckon that this will have an enormous impact on prices.

 

Dubious estimates

Doubt is cast over some estimates. Credit Suisse reckons that carry over supplies will reach the lowest in five years with an estimated 1.29 M mt this season and are set to drop further next season. Marker players are, however, sceptical. The price development in the European market, in addition, confirms their suspicions.

The prices for the old crop are ranging on the relatively high level of 0.55 EUR/kg DDP Germany. Depending on the supplier prices for the new crop may reach up to 0.45 EUR/kg DDP Germany. Processors in Germany have, however, concluded contracts with prices as low as 0.40 EUR/kg DDP Germany and traders reckon with further price drops.

Export prices remain high

The European Commission estimates the 2017/18 production at 20.1 M mt – 19.6% more than last year. An estimated 1.3 M mt are available for exports this season. As much as 1.5 M mt were, in addition, imported in 2016/17. The prices in the EU, however, remain exceptionally high in the global market and it remains to be seen how demand will develop.

 

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price chart for granulated sugar

exclusive price information obtained directly from the origin

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