In the first week of July, reference prices for sugar made further gains, continuing the rally of the previous four months. Estandar pricing is now up over 40 percent YOY, refined up over 50 percent. 

Price strength follows the general inflationary trend, further supported by the poor 2022/23 sugarcane campaign, which saw sugar production down 15 percent YOY on poor cane tonnage and sugar recovery. 

Looking at Mexico’s domestic sugar demand, apparent national consumption was estimated near 2.925 MMT (October-May), down nearly 9 percent YOY. Total exports are down nearly 37 percent YOY, and IMMEX volume down almost 24 percent YOY. Imports through May were down 84 percent YOY; boosting imports could help alleviate elevated prices, an option the AMLO administration is likely weighing as prices continue rising. 

INEGI reports prices of sweet breads, a staple in Mexico, were up 20 percent YOY in June. Bottled beverage prices were up 12 percent YOY, per Agencia Reforma. 

The full version of this commentary appeared on our IQ platform Jul. 10, 2023. Further information, statistics, and pricing for the sugar market are available to IQ subscribers. Learn more about becoming a subscriber. 


Posted by: Information Services
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