NFU Online

Last edited on: 08:01:2018

Share this story:

Sugar Market Update January 2018

growth, money, budget, grass, farm business_31381Our Commerical Analyst Arthur Marshall writes The average EU white sugar price in October 2017 was €420/t. This means that no market-related bonus has been triggered in the first eligible month of the 2017/18 campaign. Average EU white sugar prices would need to be above €475/t in order for a bonus to accumulate.

The majority of the EU sugar market is covered by annual contracts where prices are agreed over a large portion of the campaign. Therefore, unless spot prices (currently even lower in the €300s) rise substantially, enough for the small share of trade carried out on the spot market to outweigh contracted sugar prices, it is unlikely that average prices will rise towards the €475/t trigger point in the coming months.

EU 2017/18 sugar production has been revised upwards again in the latest EU balance sheet estimates from both the EU Commission and LMC, as shown below. As a result, import forecasts have moved downwards and exports revised higher.

As the saying ‘big crops get bigger’ appears to be true once again, competition for export and domestic demand is likely to grow—as is being seen in reported spot prices which have been steadily falling. With the campaign drawing closer to completion in much of Europe, remaining harvest uncertainty is rapidly diminishing and the large crop becoming ever more certain. Once campaigns are complete, focus will have to turn to indications for 2018/19 and the potential for any market uplift in that campaign.

Jan-18 beet brief graph_49959


NFU members: Have your say

Want to share your views? You must be logged in to comment – please login here. Not a member? Join us here.

Back to NFU Sugar home page

Contact

NFU Sugar Helpline:
0370 066 1974

Helpline

Tweet

Follow us @NFUSugar

Related

UK sugar beet growers' frost insurance policy details for the 2016/17 campaign.

An ecomonic overview of the sector, including the NFU Sugar Quarterly Market Update, WABCG flashmarket and currency updates.

News and information about beet reception, includes reports and grading information, whole beet sampling and more.

Links to information for growers and organisations which play a key part in the British and global sugar industry.

Important information - factory details, glossary of terms, board roles and responsibilities and key dates.

nfu sugar board

Find out who's who on the NFU Sugar Board - read their biographies here.

Factories

sugar factories Bury St. Edmunds Wissington Cantley Newark

Click on the map above to find out where the British Sugar factories are.


© 2018 - NFU Online