The queue of vessels hoping to load sugar in Brazil is currently 60% shorter than in the same period last year due to lower production and subdued foreign demand.
10 ships were registered in Brazilian ports for the first week of April to load 393,500 tonnes of sugar. A year ago, it was 23 ships that received 950,400 tons of sugar.
The main reason for this is for analysts the smaller sugar production Brazil. Brazil's mills produce more ethanol at the beginning of this year's cane harvest than last year. Producing biofuels is currently more lucrative and sugar demand is weak.
The Zuckerrohrmüller currently keep away from the export market, as the sugar prices probably remain low. Brazil is the world's largest exporter of sugar and has been receiving more competition from the European Union since last year. In addition, higher import tariffs in China since last year are reducing trade margins.
Brazil's sugar cane industry association Unica forecasts that China imported around six million tonnes of sugar last year in 2018, only killing 115,000 tonnes in 2018 due to these restrictions.
Since May 2017, China has been collecting a total import duty of 95%, provided that the import quota of 1.94 million tonnes, which is shared by many supplier countries, is exceeded.
The increase in white sugar production in Europe also weighs on prices and leads to weaker demand.
Text: HANSA Derivatives Trading GmbH / 
