More Commodities - Sugar

Sugar: Prices in the EU can compete with Brazil

June 25, 2018 at 12:59 PM , Der AUDITOR
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WASHINGTON D.C./FRANKFURT. The record global production in 2017/18 and the record end of season stocks have an enormous impact on the dynamics between the European and world sugar markets. Prices are an important concern with questions be raised as to have far they will continue to fall.


Old stocks add pressure in the EU

Granulated sugar is currently trading for 0.335 EUR/kg DDP Germany. Some market players have already accepted prices as low as 0.333 EUR/kg DDP Germany. With production prices trading as low as 0.26 EUR/kg in modern companies the prices in the EU have reached a new low. Some processors are producing without gaining any profits. Although the silos are bursting with sugar, it is therefore hardly possible to determine in how far prices can drop any lower.

Sugar in Brazil has almost reached prices in the E

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