Podcast Episode Summary: Global Sugar Market Update for June 30, 2024
- Brazil: Tereos expects to maintain its sugar production despite severe droughts affecting key sugarcane regions, aiming to process 21 million tons of sugarcane for the 2024/25 season. The El Niño phenomenon is predicted to reduce cane processing by 10 million tons compared to the previous year, but Tereos still plans to produce around 2 million tons of sugar, slightly increasing output from the prior season.
- United Kingdom: The sugar beet contract price for the 2025-2026 fiscal year will be lower at 40 pounds per tonne due to global sugar market fluctuations. The sown area for sugar beet has reached 102.5 thousand hectares, and while pests like aphids and diseases remain a concern, cool and damp weather has helped reduce pest activity, contributing to a positive crop outlook.
- Ukraine: Sugar beet crops are facing significant challenges from aphids, fungal diseases, and adverse weather. As of June 2024, aphids affected 38% of plants, and fungal diseases impacted 26%. Prophylactic treatments and the use of disease-resistant varieties are being implemented to manage these issues and protect the harvest.
- India: India's sugar market faces complexities due to government-imposed quotas and challenges like the resurgence of red rot disease affecting sugarcane. A monthly sugar quota of 24 lakh metric tonnes for July 2024, down from the previous month, may lead to price surges. The industry is shifting to more disease-resistant cane varieties to stabilize production amidst market pressures.
- Global Outlook: The global sugar market is forecasted to have a surplus of 5.5 million tonnes for the 2024/25 season, driven by increased production in Brazil and the European Union. However, rising global consumption highlights the need for strategic monitoring and adjustments to ensure a balanced market.
For more detailed insights, visit CropGPT.
