Posted on

International sugar prices strengthen, find support following industry events

Highlights

July sugar futures contract rises 5.47% on week

Hydrous ethanol in raw sugar equivalent surges 3.82% on week

Brazilian decarbonization credit CBIO spikes 240% on year

In the first working day after a week of sugar market industry events in New York, thefront-month contractJuly (N) Sugar No. 11 futures settled at 19.68 cents/lb May 16, up 2.66% on the day and marking a surge of 5.47% or 102 points week on week, suggesting that after a few conferences and meetings market participants may have changed their perspectives in terms of sugar availability.

Not registered?


Receive daily email alerts, subscriber notes & personalize your experience.


Register Now

In market events held in the prior week, sugar production estimated by trading houses ranged from 29-32 million tons. The lack of a consensus was mostly attributed to the sugar mix, which is how much from the total cane to be harvested will be converted into sugar or ethanol.

The latest estimates from S&P Global Commodity Insights projected Center-South Brazil sugar production for the 2022-23 crop period at 32 million tons, mostly unchanged from the 32.1 million tons of the prior crop but already 1 million tons lower than the initial forecast.

Considering the CS Brazil sugar availability range, which can vary by roughly three million tons, the global sugar balance from October to September can shift from a surplus estimated between 1.1 million tons up to 3.1 million tons toward a more balanced or even small deficit.

In the current CS sugar production estimated by S&P Global, the global supply and demand for the 2021-2022 crop period would be at 3.1 million tons, marking surplus cycle after a deficit of 1.55 million tons in the global crop period 2020-2021.

Although the strong price movement observed in the NY11 sugar future contract suggested that traders might be considering the low range of sugar production, the Brazilian cash premiums remained unchanged on May 16.

Platts Brazil Center-South VHP sugar for June shipment was assessed at a 6-point premium to the July (N) Sugar No. 11 Futures on May 11, unchanged on the day.

Brazilian crop

Brazilian sugarcane producers officially started the 2022-2023 crop period on April 1, however the sugarcane harvest pace was lower than usual in the first full month of crushing.

The industry association UNICA showed on its latest crop results report that, until the end of April, 180 units were crushing, down from the 207 seen in the same period of the prior year. The slow start has been attributed to the weather conditions observed since mid-2021, with a reduced volume of rain in the main producing regions encouraging producers to delay the harvesting season.

According to UNICA, 29 million tons of cane were crushed in April, down 35.8% on the year, which were converted into 1.06 million tons of sugar, a drop of 50.60% on the year, and into 1.49 billion liters of ethanol, a drop of 26.85% on the year.

Despite the high international sugar prices and a steep depreciated of the Brazilian real against the US dollar, Brazilian producers have been favoring ethanol production, and the sugar mix so far has lowered from 42.67% in the first month of the 2021-22 crop to 35.42% in the same period of the 2022-23 crop.

The production decision has been mostly driven by economic aspects. In addition to the well-known fast liquidity granted through the domestic hydrous ethanol sales, the high international fuel price, combined with the depreciated Brazilian real, has been supporting the E100 price too.

Platts assessed hydrous ethanol converted in raw sugar on at 19.86 cents/lb May 16, up 3.82% on the week and at a premium of 18 points over the July sugar future contract on May 16.

The price spike observed in the Brazilian decarbonization credit, CBIO, has also been supporting ethanol sales to the domestic market, as producers certified by the RenovaBio program can generate one CBIO per liter, which ranges according to the rate attributed to the production cycle. The fewer Co2 emissions during the biofuel production, the more CBIOs per liter sold that will be granted.

According to the Brazilian exchange B3, the CBIO price spiked to Real 102/CBIO on May 13 from Real 30/CBIO a year prior, showing a spike of 240% on the year.

While Brazilian light fuel demand has many red flags attributed to the high domestic inflation and unemployment rate, its growth was still expected to range from 0.92-2%, a positive sign for Brazilian producers who can still shift more cane toward ethanol.

Posted on

Sugar Land calendar of events

Sugar Land calendar of events

International Women’s Day Market is scheduled for 11 a.m.-3 p.m. Friday, March 18, at LaCenterra at Cinco Ranch, 23501 Cinco Ranch Blvd. in Katy. More than a dozen local women-owned businesses have signed up to join the event. Multiple booths will be on site promoting their product and services, plus a women-centric photo wall. For more information and a list of participants go to https://tinyurl.com/z9srstze.

March 19

The Boho Market

The Boho Market is scheduled for 11 a.m.-3 p.m. Saturday, March 19, at Sugar Land Town Square, 15958 City Walk in Sugar Land. Admission is free as well as parking. The event is family and pet-friendly. For more information or to apply to be a vendor through The Boho Market at www.thebohomarket.co.

Post Patty’s Day Block Party

Join the Post Patty’s Day Block Party from 11 a.m. to 4 p.m. Saturday, March 19, at LaCenterra at Cinco Ranch, 23501 Cinco Ranch Blvd. in Katy. Entry is free. Included in the event are green beer, Irish slammers and pot-o-gold shot specials; live Irish-themed music; photo-imprint beer, swag and souvenir giveaways from Guinness; and brand vendors and activities on site. Children are welcome if accompanied by a parent. Bar Louie is providing an alcohol-free kids zone featuring a shamrock decorating station, coloring station, balloon artist and face painter. For more information go to https://tinyurl.com/2p958emd.

March 21

Richmond City Commission

The city of Richmond will hold its regular commission meeting on Monday, March 21, at 4:30 p.m. at the City Hall Annex located at 600 Morton St. in Richmond. For questions, contact City Manager Terri Vela at tvela@richmondtx.gov or 281-342-5456.

Missouri City City Council

The regular meeting of the Missouri City City Council is scheduled for 7 p.m. Monday, March 21, in the City Hall, Council Chamber at 1522 Texas Parkway. For more information go to www.missouricitytx.gov.

March 22

The City Market

Join The Houston Junior Forum at The City Market, a shopping experience to be held from 10:30 a.m. to 6 p.m. Tuesday, March 22, at Bayou City Event Center, 9401 Knight Road, Houston, TX 77045. The City Market will showcase a wide variety of high-quality merchants offering an assortment of items — there will be something for everyone. General admissions tickets are $15 through March 21 and $20 at the door. Special event and VIP packages are also available. For more information and to buy tickets visit https://thecitymkt.org.

March 24

Children’s Music Class in the Park with Vivaldi

Children’s Music Class in the Park with Vivaldi is scheduled for 10-10:45 a.m. Thursday, March 24, at Sugar Land Town Square, 15958 City Walk in Sugar Land. Vivaldi Music Academy welcomes families with children ages 1-5 years old to join them in the Plaza for a free, fun morning full of singing, dancing and learning.

March 26

Raxx Vintage Market

Raxx Vintage Market is scheduled for noon-6 p.m. Saturday, March 26, at Sugar Land Town Square, 15958 City Walk in Sugar Land. Entry is free. There are expected to be more than 50 vintage vendors in the plaza. For more information go to https://raxxbu.com.

Aspiring Artists Micro Music Festival

The Aspiring Artists Micro Music Festival is scheduled for 11 a.m.-5 p.m. Saturday, March 26, at LaCenterra at Cinco Ranch, 23501 Cinco Ranch Blvd. in Katy. Enjoy live music from local musicians and free cans of ASPIRE Healthy Energy Drinks in Heritage Square. No tickets are required; attendance is free. For more information go to https://tinyurl.com/mryr8e7f.

March 27

Farmers market

The Farmers Market at La Centerra is presented the second and fourth Sunday of every month from 10 a.m. to 1 p.m. at 23501 Cinco Ranch Blvd. in Katy. There will be local vendors and artisans at Heritage Square selling honey, cheese, fresh eggs, seasonal vegetables and more. To become a vendor email customer@yourneighborhoodfarmersmarket.com.

April 1

Movies at Wessendorf

The city of Richmond presents Movies at Wessendorf at 7:45 p.m. Friday, April 1, at Wessendorf Park at 500 Preston St. The feature presentation will be “Peter Rabbit 2.” Bring your own chairs/ blankets. Food truck and Sno-Balls will be on site for purchase. The Rotary Club of Richmond will provide free popcorn. For more information go to www.richmondtx.gov.

April 2

Art Walk & Motor Madness

The Sixth Annual ART WALK & Motor Madness Set for 10 a.m.-5 p.m. Saturday, April 2, along Morton Street between 2nd and 5th streets in Richmond. The event is presented by the Historic Richmond Association in partnership with downtown merchants. Classic car enthusiasts will be able to participate in the Motor Madness car show featured at City Hall on Morton Street between 4th and 5th streets. For the second year Art Walk & Motor Madness brings Bark in the Park to this event. Attendees will also find a selection of artisan vendors and food trucks. There will be beer and wine available. Morton Street merchants will open their stores for artists to showcase their works while working live, and art lovers/ attendees are invited to shop and sip wine while engaging with artists on the Art Walk. Plein air painters, youth art projects and sidewalk chalk art will complete the unique experience for attendees at 2022 Art Walk and Motor Madness. For more information, email hra.rtx@gmail.com or check out Facebook @artwalkrichmondtx.

April 3

Car Wash for Kids Doubling the Impact

Sunday, April 3, Hope For Three Teen Huddle and over 100 teen volunteers from across the county will rev up to raise awareness and acceptance during April, Autism Awareness Month. The event, presented by Sugar Land Baptist Church will take place at C & C Dental, 17003 Southwest Freeway in Sugar Land. Teens from area schools are on hand to wash cars with an Eco-Friendly solution, from 10:30 a.m. to 2:30 p.m. The cost is free of charge; however, donations are welcome. Sugar Land Baptist Church is matching donations up to $3,500! We’re doubling our impact! Volunteer and sponsor opportunities available. For more information or to find autism resources, visit: www.hopeforthree.org/events or call 281-245-0640.

April 5

Sugar Land City Council

The Sugar Land City Council is scheduled to meet for its regular session at 5:30 p.m. Tuesday, April 5, at Sugar Land City Hall, 2700 Town Center Blvd. N. For more information go to www.sugarlandtx.gov.

Rosenberg City Council

The Rosenberg City Council is scheduled to meet for its regular session at 6:30 p.m. Tuesday, April 5, at Rosenberg City Hall, 2110 4th St. Council meetings may be viewed live on YouTube, the city of Rosenberg website, or by Rosenberg Comcast customers on channel 16. For more information go to www.rosenbergtx.gov.

April 18


Richmond City Commission

The city of Richmond will hold its regular commission meeting on Monday, April 18, at 4:30 p.m. at the City Hall Annex located at 600 Morton St. in Richmond. For questions, contact City Manager Terri Vela at tvela@richmondtx.gov or 281-342-5456.

Missouri City City Council

The regular meeting of the Missouri City City Council is scheduled for 7 p.m. Monday, April 18, in the City Hall, Council Chamber at 1522 Texas Parkway. For more information go to www.missouricitytx.gov.

April 19

Sugar Land City Council

The Sugar Land City Council is scheduled to meet for its regular session at 5:30 p.m. Tuesday, April 19, at Sugar Land City Hall, 2700 Town Center Blvd. N. For more information go to www.sugarlandtx.gov.

Rosenberg City Council

The Rosenberg City Council is scheduled to meet for its regular session at 6:30 p.m. Tuesday, April 19, at Rosenberg City Hall, 2110 4th St. Council meetings may be viewed live on YouTube, the city of Rosenberg website, or by Rosenberg Comcast customers on channel 16. For more information go to www.rosenbergtx.gov.