Latest Sugar News - Fork Cast

The Chishmin Plant in Bashkortostan has started supplying sugar beet pulp to Uzbekistan. A batch of 20 tons was sent in November, with plans to increase the volumes to 1000 tons monthly. Beet pulp is in demand in Uzbekistan's livestock farming and is considered an effective feed additive.

The plant has expanded its capacity after modernization and changed its strategy, focusing on supplies to China and Kazakhstan.

The ISO conference highlighted a growing interest in sustainable fuels due to the pandemic. High pollution levels affect COVID-19 mortality. The demand for ethanol is increasing, and bioethanol production could grow tenfold. Sugar consumption is decreasing, impacting the market and exports. According to Plinio Nastari's estimates, sugar production in Brazil is expected to reach a historical record.

In 2024, farmers in the Kursk region harvested around 2 million tons of sugar beets, which is 23% less than the previous year, due to extreme conditions.

The average yield is 434 centners per hectare.

Prices for the world sugar No. 11 have decreased by 3.59%, and for London white sugar No. 5 by 2.44%. The reason is the forecast of rain in Brazil, which eased concerns about drought and stimulated futures sales.

The sugar beet harvest in the EAEU countries this year amounted to more than 31.8 million tons, with an increase in yield in Belarus, Kazakhstan, and Russia.

There are a total of 73 sugar processing plants operating in the EAEU territory, where 2.85 million tons of sugar were produced.

The Brazilian agency Conab predicts a 32% increase in sugar production, reaching 39.33 million tons. Ethanol production is expected to decrease by 14% to 30.56 billion liters. Sugar exports have increased by 70%.

In Tatarstan, an increase in sugar production is expected compared to last year. 61% of the beet planting area has already been harvested, with a yield of 457 centners per hectare. It is planned to harvest more than 2 million tons. There will be no sugar shortage, and prices will remain stable.

The Ministry of Agriculture of Russia has noted the lack of rain for the successful sowing of winter crops. Planting 20 million hectares has faced problems due to lack of moisture. The solution to the problem may depend on the weather, so calling upon the Prophet Elijah is considered possible.

In Germany, a yellowing virus affecting sugar beet crops has been detected, causing Sugar Beet Root Syndrome (SBR). The disease has spread in the southwest of the country, aided by a mild winter. Producers are demanding support from the authorities. France has already presented a plan to assist its farmers.

In 2024, sugar beet production in Russia is expected to decline by 20% to 42 million tons. The yield has decreased by 20.7%, but the sugar content in some regions has increased to 18-20%. In Bashkortostan, the yield has increased, but the sugar content has fallen. The plant in the region will be able to process up to 1 million tons of beets.

Last week, sugar futures for March closed higher, driven by a decrease in production in Brazil. Prices rose slightly due to a 16.2% decrease in production, reaching 2.829 million tons. However, the price increase was limited by the expected production growth of 1.5% by the 2024/25 season.

Wholesale prices for sugar have slightly decreased after the increase. The main factors contributing to the price hike include: weakening of the ruble, increase in global prices, proximity to conflict zones, and a dry September. The most critical situation is observed in the Voronezh, Tambov, and Belgorod regions.

The sugar production forecast is 6.3-6.4 million tons. The cost of sugar production ranges from $713.9 to $926.92 per ton. The volume of Russian sugar exports has increased, with one-third directed beyond the EAEU.