Sugar melts and with it the hopes of a quick return to better fortune
Since June, the price of sugar has fallen. To the point of touching the bar of 11 cents a pound and getting closer to one of its lowest levels since 2008.
Posted yesterday at 10:30 Time to Reading 2 min.
Raw materials. Beet juice, flush with daisies. Normal for a root, will you say. But this consideration is not agronomic. Since June, the price of sugar undergoes a new blow of slack. To the point of touching the bar of 11 cents a pound and approaching one of its lowest levels since 2008. The sugar melts and with him the hopes of a quick return to better fortune.
White powder manufacturers are crushing black. And the planters? The heat wave and the summer drought gave them cold sweats. But the beet is a tough one to cook. In areas that have benefited from waves such as the North, Pas-de-Calais or Alsace, the root continues to grow. Decision was made to wait a bit to reinflate the crop.
Even if the first grubbing is expected mid-September. As a result, the General Confederation of Planters (CGB) estimates today the yield of beet in France at 83.5 tonnes per hectare. This is below the average of the last five years, but slightly better than in 2018. However, the performances vary widely from one region to another.
the other. In Aisne, Oise and especially in Auvergne, the thirsty roots are more puny. In total, the expected production is 38 million tonnes.
They scan the horizon
The challenge for planters is to know at what price their root will be sold. Exercise is delicate for sugar mills. They must convince the 26,000 planters to continue the adventure even if the sugar beet lost its rent status. With the end of sugar quotas in Europe, the safety net of the guaranteed minimum price has frayed. Already this year, the surfaces
planted with beetroot lost some ranks, from 480,000 to 450,000 hectares.
The German SüdZucker, which owns Saint-Louis Sucre, and the Cristal Union cooperative have already announced the shutdown of four plants in France in 2020. Like the cooperative Tereos, they are trying to pass the storm; their accounts turned red. All have their eyes on the price of sugar. And hope for a tack to more heavens
clement. They scan the horizon and see signs of improvement. While the
Production levels are falling in Europe, India and Thailand, with the vagaries of the weather, and Brazil is playing the ethanol card, the sugar market should become a deficit again in 2019-2020.