Sugar
Deficit in 2020/21 increases to 3.504 mln tonnes from 0.724 mln tonnes in August
Latest revision of 2019/20 balance returns a surplus of 1.855 mln tonnes
Consumption data, including Covid-19 adjustment in 2019/20, left unchanged
Global trade increased by 10% in 2019/20
Stock to use ratio ends 2019/20 at multi-year high
Futures market prices strengthen, markets in backwardation for 2021 positions
USD weakens, CNY and MXN strengthen
BRL shows significant volatility, depreciating to BRL5.63 per USD in October
Domestic prices rise in Brazil, China and Russia, and fall in the EU, India, Mexico, and the US
Commodity Prices
Weaker USD broadly supportive for commodity prices
Crude oil prices stagnate around USD40/bbl
Corn prices rally to highest level since August 2019
Fuel Ethanol
Uncertainty remains over the impact of the pandemic on global fuel supply and demand
World production in 2020 revised to 100.9 bln litres, but expected to recover in 2021
Global consumption to fall to 98.3 bln litres in 2020
US production stagnates while Brazil focuses on sugar production, rather than ethanol
Bioplastics and Biochemicals
Braskem back to operating at full capacity
UK bans single-use plastic straws, stirrers and cotton buds
Cogeneration
Bagasse-based energy is the largest source of renewable in Australia
Honduran mills represent 10% of renewable energy production
Ugandan sugar mills account for 8% the country’s total energy output.
Alternative Sweeteners
US HFCS consumption reduced by 2.45% to 6.680 mln short tons in 2019
US HFCS production decreased by 8% to 3.659 mln short tons in the first half of 2020
HFCS input costs rise on strong corn market
Molasses
Global molasses production outlook for 2020/21 is 65.2 mln tonnes
Cane molasses prices rise above raw sugar values again
Beet molasses prices drop to USD171/tonne in September 2020
WTO Update
India responded to members on its agriculture issues, including subsidies for the sugar industry
Members resumed negotiations on agricultural trade reform
WTO and FAO hold webinar on Agrifood trade policies
RTAs
BRICS Ministers of Agriculture hold virtually meeting in September.
ASEAN ministers discussed future of the Regional Comprehensive Economic Partnership
China looks to sign new free trade agreements with the EU, Japan and South Korea
i-iii Executive Brief 1 World Sugar Market 1 World Balance 3 Supply 3 Production 13 Export Availability 16 Demand 17 Consumption 18 Imports Demand 20 Brief(20)06 – Trade Balance for Raw and White Sugar 21 World Market Events and Prices 24 Currency Movements 26 Domestic Prices 28 Commodity Prices 30 Fuel Ethanol 30 Overview 31 Production 35 Consumption 36 Trade 38 Prices 41 Bioplastics and Biochemicals 42 Cogeneration 43 Alternative Sweeteners 43 HFCS / Isoglucose 45 Intensive Sweeteners 46 Molasses 50 WTO Update 51 Regional Trade Agreements 52 World Sugar Balance Estimates The views expressed in this document are those of the ISO Secretariat. They do not necessarily represent the views of the ISO Members.