Market Briefing: Sugar -11 Dec

Market Briefing: Sugar -11 Dec

– China produced 759,100 tonnes of sugar in the first two months of 2021/22
– Kazakhstan’s domestic consumption of sugar in 2021 was 5% above last year’s levels
– Raw sugar March hits two-week high of 19.90 cents

Production
– China produced 759,100 tonnes of sugar in the first two months of 2021/22, down from 1,113,200 produced in the same period a year ago, China Sugar Association (CSA) data showed. Beet sugar output was down at 643,400 tonnes from 897,700, while the first month of cane crushing saw 115,700 tonnes of cane sugar produced, down from 215,500 a year ago.
– USDA cuts its estimate of US sugar production in 2021/22 by 91,463 short tons, raw value (STRV) to 9.241 million due to a downward revision of both beet and cane sugar production.

Demand
– Kazakhstan’s domestic consumption of sugar in 2021 was 560,000 tonnes, 5% above last year’s levels. Kazakhstan’s quota for duty-free imports of raw sugar in 2022 could be 384,400 tonnes, a source familiar with the paperwork for a meeting of the Eurasian Economic Commission said. The quota for 2022 is a sum of 134,400 tonnes approved until 30 September 2021 and an additional 250,000 tonnes.

Trade
– The Council of the Eurasian Economic Union (EAEU) has approved quotas for the import of white sugar and raw sugar into the EAEU countries. The only difference from the initial plan is the volume of the import quota for Belarus, which was increased to 100,000 tonnes from 90,000. The total import quota therefore rises to 780,000 tonnes from 770,000.
– The tariff rate quota for the import of sugar into the Russian Federation will be 300,000 tonnes in 2022, said the Minister of Economic Development, Maxim Reshetnikov. Russia had a duty-free sugar import quota of 350,000 tonnes in place from 15 May to 30 September this year, but only 37,400 tonnes of sugar were imported within its framework.

Price
– Raw sugar futures in New York settled higher for the fifth straight session on December 8, which elevated the benchmark March contract to a two-week high of 19.90 cents in the course of the session. The contract eventually settled at 19.82 cents per pound, which was still up 34 points on the day with the intraday low touched at 19.36 cents. White sugar futures in London also ended higher with the most-active March contract rising by $8.10 to settle at $513.70 per tonne, after earlier touching an intraday high of $515.80 per tonne.
– The March/March white sugar premium also rose a little further to $76.74 per tonne, a new seven-week high, up from $76.14 a day earlier.

Source: (IHSmarkit)

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