CropGPT - Sugar - Week 42

CropGPT - Podcast for Soft Commodities

Weekly Global Sugar Market Summary – October 20, 2024

• India: In Amroha, Uttar Pradesh, sugarcane crushing has started earlier than usual, though lower-than-expected sugar content has impacted jaggery production, leading producers to add sugar to maintain quality. Extraction rates currently yield 9 kg of jaggery per quintal of sugarcane, with jaggery prices ranging from ₹3,800 to ₹4,000 per quintal and sugarcane prices between ₹270 and ₹280 per quintal. There is optimism for improved sugar content post-rainy season. Protests continue at Natems sugar factory in Andhra Pradesh over unpaid dues, while smuggling issues near the Bangladesh border persist in Meghalaya. In Bareilly, officials have warned Baheri Sugar Mill over ₹40 crore in unpaid cane dues. In Gujarat, DCM Shriram Ltd. has launched a 300-ton-per-day flexi-fuel plant to enhance operational efficiency and support export strategies.
• Brazil: The South-Central region reports a reduction in sugarcane milling to 39 million tons as of late September 2024, a decrease from last year, but the overall milling since the start of the harvest has risen by 2.35%. Sugarcane quality has improved, with total recoverable sugars at 160.01 kg per ton. Sugar production fell by 16.21% during the period, yet ethanol production saw a notable boost, especially with a 38.33% increase from corn-derived ethanol. Ethanol sales grew by 6.24% in September, supported by the issuance of 32.31 million decarbonization credits this year.
• Australia: In Queensland, the main sugarcane-growing area, temperatures dipped slightly to 22.38°C with minor rainfall increases to 2.58 mm, suggesting a wetter period though not extreme.
• United States: In Florida, a slight temperature decrease with moderate rainfall increase is influencing yields, while Louisiana faces rising temperatures and historically low rainfall, presenting production risks.
• Thailand: In Phitsanulok and Khon Kaen, drier, cooler conditions are affecting sugarcane farming, potentially impacting yields amid severe dry spells.
• China: In Guangxi, sugarcane-growing regions report warmer temperatures and slightly higher rainfall within normal ranges. However, Yunnan and Hainan are experiencing cooler temperatures and lower rainfall, which may impact growth in these key production regions.

These updates reflect how variable weather and economic conditions are shaping sugar production in major regions, impacting both market prices and trading dynamics.

For further in-depth data, visit CropGPT for comprehensive sugar market reports, crop health updates, historical weather data, pricing insights, and earnings analysis. This podcast highlights key developments for the week.