Estandar price higher in last week: The reference price for estandar rose 0.8 percent in the last week, though refined pricing was flat. Estandar and refined are up 7.7 percent and 2.9 percent, respectively, from a month ago.

Year on year, estandar is up 19.2 percent, and refined is up 8.4 percent.

We will continue to watch reports of a potential revamping of the cane reference pricing mechanism. Per Tecnoempresa, the Labor Ministry is mediating meetings between the union of cane industry employees and CNIAA, which represents the Mexico’s sugar mills. Cane workers are reportedly requesting a 20 percent salary hike. Cane industry leadership may have been inspired by the seemingly successful push by sugarcane grower unions for an update to the cane pricing mechanism.

Drought condition on Mexico’s Gulf Coast: Poor rains could mean lower sugarcane production and yield for the new crop. Mexico’s top-two sugar producing states, Veracruz and San Luis Potosi, lie on or near the country’s coast on the Gulf of Mexico.

The northern half of the top-producer Veracruz has seen a larger rain deficit, and reports from the state range from concerns over limited cane availability to suggestions that the drier weather may boost cane’s sugar content.

Precipitation, percent of normal

Source: NOAA
Posted by: Information Services
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