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Sugar: Czech Republic about to buy German sugar?

May 8, 2020 4:37 PM, Der AUDITOR
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FRANKFURT/PRAGUE. Market players are reporting a high oversupply of sugar, not least due to the corona crisis. Due to the closure of the gastronomy sector and the cancellation of events, both important consumption sectors for...

... ice cream and soft drinks, less sugar was used. Some processors had to cancel their contracts because they knew that they would not be able to purchase the requested quantities this season. Depending on the quantity purchased, prices for granulated sugar, EU Cat. II from EUR 0.45 per kg DDP are possible within Germany. Due to the strong Czech crown, Czech traders are currently selling their supplies for about EUR 0.455 per kg DDP Czech Republic and do not rule out that sugar imports from Germany will soon be an option.

How the market might develop further will become clear in the coming weeks. With the current easing of anti-corona measures, sales in the catering trade could rise again, but so could the infection rate. In the area of Coesfeld in Germany, for example, the relaxation of the measures has already been postponed until 18 May, after more than 100 employees were infected in a slaughterhouse. This drove the statistics for the district over the new upper limit of 50 new infections per 100,000 inhabitants and week.

This shows how quickly the situation can change again in all sectors, including the sugar processing industry. A rapid return to normal demand in the German sugar market is not expected at present.

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