Sugar prices fell to a 12-year low
Last week the world quotations on sugar-a raw for the first time in 12 years fell below 10 cents/Anglo-pound, reaching 9.8 per cent/Anglo-pound.
since March 12 raw sugar fell by 40%, and may futures on the stock exchange in new York on Friday fell to its lowest since June 2008 level 215 $/t. Quotations of white sugar in bags has decreased less, and the August contracts on 21 April traded at 322 $/ton, which exceeds the local minimum of July-August last year. It should be noted that sugar prices have not fallen as much as oil or other commodities.
After two seasons of surplus when most countries were accumulating stocks and declining sugar prices in 2019/20 Mr in the world there is a shortage of sugar due to the reduction in production in India, Pakistan, Thailand, Ukraine, and selected EU countries due to dry weather. The situation is partially compensated by the increase in production in Russia from 6.13 to 7.71-7,75 million tons and Brazil by reducing the processing of cane to ethanol.
In dry weather conditions and low sugar prices in 2020/21 MG significantly reduced the acreage of sugar beet in Germany, Ukraine, Belarus and southern Russia.
Despite a record pace of exports, the sugar stocks in Russia and Belarus amount to 2.15 million tonnes and starting from November 2016 high for this time of year is constantly updated.
According to the forecast of the Ministry of agriculture of Russia, in 2020, the acreage of sugar beet will decrease by 16% to 945 thousand hectares, and on 23 April they are sown by 602.5 thousand hectares or 63.8% of the planned volume. Slightly reduce the acreage of Belarus.
In Ukraine sugar beet sown 199,8 thousand hectares of the planned 209 thousand hectares, while in 2019 they sowed 220 thousand ha. last year the country has reduced production of sugar by almost 30% to 1.48 million tons due to reduced acreage and low world prices, and reduction in exports due to high competition with Russia in the markets of the former Soviet republics.
Global demand for sugar this year will continue to decline due to reduced consumption of expensive chocolates, juices and sweet water, called the quarantine restrictions.