In the grand sugar overture conducted by the International Sugar Organization (ISO), global sugar production takes center stage, dancing to the tune of higher estimates for the 2022-23 season. The ISO projects an upbeat 179.89 million tonnes (mt), approximately 0.87% higher than the previous season’s 178.33 mt. However, this melodic surge is accompanied by a softer note, as import demands and export availability take a minute stance.
Like a dynamic ballad, the sugar landscape unfolds with consumption hitting a harmonious chord at 180.22 mt, a 1.24% rise from the previous season’s 178.02 mt. Painting a vibrant picture leads to a subtle deficit of 0.34 mt, a departure from the surplus of 0.31 mt in 2021-22. Despite the minor discord in end stocks, forecasted 0.4% lower at 100.67 mt compared to the previous year’s 100.71 mt, the sugar trade perceives this as an optimistic variation. The sugar market, a canvas painted with import and export strokes, sees a projection of lower import demands at 65.01 mt, a descent from 66.07 mt, while export demands harmonize at 64.76 mt, a hue softer than the 65.7 mt in 2021-22.
Furthermore, market veterans interpret this sugar dynamics as a balm for the recent turmoil in international sugar prices, which surged to a 12-year high on November 9, surpassing 28 US cents per pound. The ISO’s estimate stages a gentle ease, bringing prices to 27.20 cents, providing a respite in the sugar market.
Insightful notes paint a landscape where Brazil’s sugar production takes the spotlight, balancing the global sugar demand while India observes from the sidelines. Government restrictions on exports align with domestic consumption and ethanol commitments. The tempo of crude oil prices becomes crucial in Brazil’s production ratio between sugar and ethanol, predicting a harmonious softening of international prices in the short term. To conclude, the ISO’s projections serve as the conductor, guiding the global sugar markets through a harmonious blend of estimates, deficits, and market fluctuations, creating a melody that resonates with the nuances of sweetness and balance.
Import/Export Statistics
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