Reuters News – Alvean, the world's largest sugar trading company, believes demand will increase in the coming months, despite current high costs, as consuming countries have basically used most of their available stocks. during the year. Alvean Chief Executive Paulo Roberto de Souza told Reuters on Friday that the sugar market is currently very tight due to lower production, adding that the company expects the global deficit to nearly double in 2021/22 (October -September) compared to the previous year, to up to 6 million tons. Sugar-consuming countries have been making intensive use of available stocks during the year to avoid high sea freight and sugar prices, Souza said, adding that these stocks are now at critically low levels.
Reuters News – The European Commission has reduced its outlook for sugar stocks in the 27-nation European Union in 2021/22, now projecting only a slight recovery from last season's low level, a report showed on Friday. Stocks at the end of the 2021/22 season that started this month were seen at 1.2 million tonnes, compared with an estimated 1.1 million at the close of 2020/21, according to figures in the Commission's short-term agricultural outlook report. In a previous outlook in July, the EU's executive had projected 2021/22 stocks of 1.4 million tonnes.
Bloomberg - Raw sugar climbed to a fresh four-year high with supplies from top exporter Brazil further threatened by surging global energy prices. Crude oil extended an advance as part of a global energy crunch, which may boost the incentive for Brazilian millers to make more ethanol from their cane and less sugar. Crops in the country have already been hit by drought and frost, sparking worries about tighter global supplies and sending futures in New York up more than 30% this year. “The macro is another positive picture this morning with energy firmer,” ADM Investor Services International said in a note. “The market looks firm and could continue to improve, although trading volumes need to improve to substantiate the move.”