Sugar
World market in surplus in 2017/18
A record world sugar production
World market values under downward pressure
Hedge funds net-short in New York since May
Mixed performance in domestic prices
US Dollar continues to weaken
Special Focus – The new Petrobras oil pricing policy – what does it mean for ethanol?
In October 2016, Petrobras changed its gasoline pricing system
Closer alignment between domestic and international gasoline prices?
Commodity Prices
Doubts remain over effectiveness of OPEC-led output curb and US production grows…
… but oil prices kept in check by reduced stocks in the US
Futures prices of corn soybean, and wheat plummet in July
World Fuel Ethanol
Global production and consumption to rise modestly
Higher mandated inclusion in US market
Brazilian output to contract
Higher production and use in smaller mandated markets
Global trade to shrink in 2017
Bioplastics and Biochemicals
Low crude oil prices mean a difficult phase for bio-based chemical building blocks…
… but 8% per year growth expected
Cogeneration
Australia’s MSF Sugar’s Atherton Tableland refinery to have 24MW capacity
Brazil’s biomass-based generation in Q2 increased 20% compared to last year
Alternative Sweeteners
Further contraction in US HFCS offtake
China’s HFCS output to grow
Potential new supplier of monk fruit sweetener to EU market
Steviana Bioscience looks to enter market for next-generation stevia sweeteners
PureCircle develops StarLeaf stevia plant
Molasses
Molasses prices expected to weaken
Significantly boosted production in EU will depress import demand
WTO Update
Agriculture Chair urges governments to significantly accelerate negotiations.
RTAs
Upcoming NAFTA renegotiation
Agriculture a stumbling block in EU-Mercosur negotiations
RCEP negotiations advance
TPP signatories discuss future without US
EU-Japan trade deal announced
Several Pacific island nations opt out of PACER Plus
Table of Contents i-iii Executive Brief 1 World Sugar Market 1 World Balance 2 Supply 2 Production 10 Export Availability 11 Demand 11 Consumption 13 Imports Demand 15 Brief(17)06 – Trade Balance for Raw and White Sugar 16 World Market Events and Prices 19 Currency Movements 21 Domestic Prices 23 Special Focus 23 The new Petrobras oil pricing policy – what does it mean for ethanol and sugar? 26 Commodity Prices 28 World Fuel Ethanol 28 Overview 28 Production 30 Consumption 33 Ethanol Trade 34 Prices 37 Bioplastics and Biochemicals 38 Cogeneration 39 Alternative Sweeteners 39 High Fructose Corn Syrup 42 Intensive Sweeteners 44 Molasses 47 WTO Update 48 Regional Trade Agreements 50 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.