Mill warehouses remain under the control of cane growers, though the CNC grower group maintains that this campaign, intended to preserve sugar pricing, did not hinder milling or processing at any facility. Given that cane pricing is calculated based on wholesale sugar pricing, growers have decried what they characterize as low selling prices, highlighting sales made to major buyers like bottlers.

As exports do not directly affect cane price calculations, growers have reportedly not interfered with shipments for export. Exports YTD totaled 956,082 MT through May 2, including 535,744 MT (including late exports from last season), ROW exports of 200,501 MT, and IMMEX volume of 219,838 MT.

Some 15 mills have already finished their crush campaigns this season, but cane growers are as yet unwilling to relinquish control, per El Sol de Cuernavaca. Growers may be beginning to relax blockades of some mill storage with the announcement of a strong sugar price for the season, which will be the basis for pending cane payments.

Reference pricing for estandar and refined fell by 1.0 and 1.7 percent, respectively, in the first week. Estandar was down half percent from the four-week average, and refined down 1.8 percent. The peso has been range-bound vs. the dollar through the current fiscal year, between about 19.90 and 21.30 pesos per dollar.

Through May 1, sugar production totaled 5.310 MMT, up 13 percent YOY and up over 1 percent from the five-year average.

Mexican peso exchange rate

Source: DTN
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