World Sugar News for August 2010

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• Pakistan approves imports

  
  Pakistan has approved imports of 320,000 metric tons of white sugar at a cost of $724.95 per tonne C&F, aimed at building up stocks and curbing a price rise, according to an official of the Trading Corporation of Pakistan (TCP). The TCP received eight bids from international suppliers against their import tender for 200,000 tons, but decided to buy more than the tendered amount from two bidders, who quoted the lowest prices, said an executive of the state-run company. The TCP approved bids from Agro Corporation International and Dubai’s Sucden Middle East, will supply 250,000 tons and 70,000 tons respectively. The consignment is expected to arrive by the end of October. The origin of the sugar was thought to be Indian origin, which was supposedly viewed as negative, but it remains to be seen if the Indian government doesn’t intervene to prevent such a large export given stocks are low, but on the other hand such exports would probably fall under the Advance License Scheme (ALS) where the obligation to export are for about one million tons before March 31, 2011 against duty free raw sugar imports in 2008/2009. The TCP plans to issue another import tender of 175,000 metric tons on Friday, Aug. 6.

• Brazil’s season pressing on inexorably

  
  

  Brazil’s main centre-south 2010-2011 sugar output reached 14 million tons in mid-July, according to a report released by the Sugarcane Industries Association (Unica). Mills produced 30.4% more sugar than the same time a year ago as a result of dry weather in recent months and early harvesting in the centre-south region, which accounts for 90% of the country’s cane crop. Unica also said that Brazil’s centre-south sugarcane crush reached 255 million tons as of July 15th, up 20.2% from the same period a year ago. The region’s ethanol production reached 10.9 billion litres as of July 15th, up about 20.6% from the same time a year ago. 

   

  In a separate report, F.O. Licht has lowered their crop estimate for Brazil’s centre-south region to 579 million tons, compared to other forecasts which were looking for 600 million tons plus crush.  There was also a report from the Brazilian agricultural consultancy AgraFNP saying that Brazil’s main centre-south sugarcane region is likely to crush 579 million tons in 2010-2011. This is a slight reduction from their first estimate of 583 million tons due to the recent dry weather. Sugar output is forecast at 32.4 million tons and ethanol at 26.1 billion litres.

• Russia lowers white sugar forecast

  
  The Russian Sugar Producers’ Union cut its forecast for white sugar output from beets this year to between 3.2 million – 3.3 million tons, from a previous estimate of 3.2 million – 3.5 million tons.

• Indian sugar stocks on the increase

  
  

  Indian sugar stocks as of September 30 are pegged at 5.8 million tons, up from 3.2 million tons a year earlier, but down from slightly from a previous estimate of 5.9 million tons, according to the Indian Sugar Mills Association.

  
  

  Meanwhile, trade sources are estimating Pakistan sugarcane losses due to the flooding at the about 7.5 million tons, which equates to roughly 700,000 tons of sugar production.

• ISO expects 3m ton surplus in 2011

  
  The International Sugar Organization (ISO) in its first assessment of the 2010-2011 crop said it expects world sugar production to rise 11.5 million tonnes or 7.3% for the year, to a record 170.38 million tons, leaving a global surplus of 3.2 million tons. India is expected to become a net exporter this year due to an anticipated increase in production of 7 million tons. The ISO is predicting that India will export 945,000 tons in the 2010-2011 crop cycle. Global consumption is expected to increase to 167.2 million tons, up 2% on 2009-2010, leaving a stock-consumption ratio of 33.6% for the season, up from a low of 33.5% in 2009-2010.