CNDSCA reported 2017/18 production at 6.010 MMT, up 1 percent YOY, and demand (including exports) at 5.750 MMT, down 5 percent YOY. Thanks to imports of 132,343 MT, up 173 percent YOY, carryout was reported at 1.395 MMT, up a very strong 39 percent from 2016/17 carryout of 1.002 MMT. Notably, 2017/18 carryout includes 297,157 MT of bonded stocks, classed as not “available” by Mexico’s ag ministry.
More on the notable decrease in 2017/18 sugar demand: Both total exports and apparent consumption were down by 6 percent YOY, but the overall decline in total demand was saved from being quite that high thanks to IMMEX sales, which were up by 21 percent at 393,550 MT. The only other minor gain was seen in out-of-quota (OOQ) exports of 33,518 MT, more than double 2016/17 OOQ exports.
According to one recent study, about 80 percent of Mexico’s population consumes excessive volumes of sugar, with teenagers unsurprisingly among the most avid consumers. Despite the 2014 beverage tax, researchers still highlighted these products, who stated that 70 percent of the consumption of added sugars came via beverages.
With the start of the crush campaign still a while away, both refined and estandar pricing strengthened last week, up 0.6 percent and 1.2 percent, respectively. The peso fell to a six-week low against the dollar at the end of last week.
Mexico sugar reference price history
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