Other than a brief period from mid-August through early September, Mexico’s sugar reference price has been rising since late February. Per trade sources, Mexico has continued to import sugar containers from Brazil, a slow process due to bureaucratic and practical considerations, but prices remain at inflated levels. The average price for refined sugar for the week of Oct. 23 was flat week-on-week, that week’s price was the first hint of a sign of slowing appreciation since late August, possibly a fluke since new-crop production is almost certainly only minimal at this stage. 

As a reminder, USDA last forecast Mexico’s 2023/24 new crop at 5.8 MMT, below other estimates between 5.2 and 5.5 MMT. 

In a Oct. 24 announcement, Mexico’s Economy ministry announced the Base Export Limit to the U.S.—under the Suspension Agreements and based on the September WASDE—at 0.815 MMTRV, calculated as 70 percent of estimated U.S. needs of Mexican sugar of 1.165 MMTRV (1.284 million STRV). 

The full version of this commentary appeared on our IQ platform Oct. 30, 2023. Further information, statistics, and pricing for the sugar market are available to IQ subscribers. Learn more about becoming a subscriber.

Source: 123rf.com
Posted by: Information Services
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