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Tight supplies of sugar both in the UK and on the Continent are driving prices up, with UK sugar production estimated by the NFU to be about 350,000t below last year’s levels.
Total sugar supply is forecast to be 200,000t below 2021-22 levels, despite an increase in import volumes year-on-year.
Meanwhile, in the EU, the average price of white sugar was up by 80% on the same month last year in June 2023, to average €817/t (£702/t).
See also: British Sugar offers £3,000/ha to encourage early beet deliveries
“With the vast majority of sugar in Europe sold on contracts at prices agreed pre-campaign or prior to the start of the calendar year, this is not surprising, but nonetheless underlines the exceptionally high price level in the market,” said NFU Sugar commercial and market insight manager Arthur Marshall.
Average prices of white sugar imported into the UK have increased in line with EU average prices, which is likely to be reflective of white sugar prices sold in the UK, he added.
Global sugar deficit
The NFU has reported anecdotally some UK sugar sales in the region of £860/t for 2023-24.
There is a current global deficit for sugar of about 1m tonnes, according to NFU Sugar board appointee and sugar trader Paul Harper.
“The raw sugar market has been treading water, while the white sugar market has held steady following continued strong demand,” he said.
Mr Harper concluded that if white sugar premiums remain high, as expected, there could be more demand for raw sugar from refineries, which would support prices further.
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