The June WASDE report offered almost no new information for sugar. The only change made to 2020/21 supply and demand estimates was a 50,000 ton reduction in other program imports that resulted in a 50,000 ton reduction in stocks and carried into the 2021/22 balance sheet; other S&D estimates for 2021/22 were unchanged. The 2020/21 stocks-to-use ratio is now at a comfortable 14.3 percent, but that may not be indicative of the present supply situation, particularly with raw cane sugar.
Raw sugar prices have stabilized on the nearby contract for the current crop year at $0.33, however, the deferred contracts covering the 2022 crop year have been increasing over the last month and are now trading in the low $0.30 range. These values are up between $0.03 and $0.04 from last year’s contracting season. Contracting for 2022 has picked up pace over the last few weeks.
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