Expana Benchmark Prices for beet sugar and cane sugar have been steadily slightly lower throughout the month as supply and demand are in balance. The Expana Benchmark Price for beet sugar spot FOB Midwest was most recently assessed at $0.54/lb, while cane sugar spot FOB Southeast was last assessed at $0.59/lb. Both prices declined about 2% m-o-m, with participants noting that buyers are confident in their positions.
Spot business remains limited as beet processors are hesitant to sell surplus supply until more information is available on the 2024 beet crop. Sources tell Expana that storms hitting areas of Colorado caused hail damage to the crop, and there is likely to be some yield loss as a result. According to the USDA’s annual Acreage report, the sugar beet planted area is down about 1.7% from the March Prospective Plantings report and 2.5% below year ago levels. The largest declines were recognized in the Red River Valley region, with harvest area estimated to be down 3.4% y-o-y.
Meanwhile, the Louisiana sugar cane crop is projected to be well above year-ago levels. However, the USDA reported that the total sugar cane area for harvest in 2024 is anticipated to reach 909,000 acres, a 2.2% decline from 2023. According to market participants, there was an uptick in inquiries for cane sugar post-Fourth of July, but most players stated that this was likely due to operations closing for the holiday rather than a notable shift in demand.
In the latest WASDE report, the USDA revised its 2024/25 forecast for sugar production. Supply for 2024/25 was increased to 249,972 short tons raw value (STRV) on a combined increase in beginning stocks and beet sugar production, offsetting a reduction in imports. Beet sugar production was projected at 5.23 million STRV, a slight decline from June. There were no changes in use, with ending stocks estimated at 1.69 million STRV, for a stocks-to-use ratio of 13.5%.
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