Info
Published on: April 1, 2015
Social media pitch
Rabobank - A decline in global sugar prices due to abundant supplies and four year production surplus http://pr.co/p/0024hc
Summary
According to the latest Rabobank Sugar Quarterly report, abundant global sugar supplies have been steadily accumulating after four years of a production surplus, leading to the decline in global prices. Main import destinations like China and Indonesia have abundant stocks and are wary about importing more sugar in 2015, after seeing domestic prices collapse. Rabobank forecasts a global sugar production deficit of 0.7 million tonnes raw sugar for the season.
Details

According to the latest Rabobank Sugar Quarterly report, abundant global sugar supplies have been steadily accumulating after four years of a production surplus, leading to the decline in global prices. Main import destinations like China and Indonesia have abundant stocks and are wary about importing more sugar in 2015, after seeing domestic prices collapse. Rabobank forecasts a global sugar production deficit of 0.7 million tonnes raw sugar for the season.

"Sugar stock levels are high at both origin and destination. Lack of import demand, despite falling international sugar prices, reflects high stockpiles at destination, this in turn is resulting in a large build-up of stocks at origin,” says Rabobank Sugar Analyst Yong Chang Jian.

Main exporting countries’ currencies are depreciating against the US dollar. Producers from main-producing countries like Brazil and Australia are willing to sell at lower future prices that are denominated in a strengthening US dollar.

Tighter import regulations by governments in main destinations like China and Indonesia have led to the reining in of raw sugar imports from refiners in these countries.

For more information please contact the report’s author:

Yong Chang JianChangJian.Yong@rabobank.com

For other information, please contact Rabobank press office:

Koos Verheul: k.verheul1@rn.rabobank.nl, +31 30 21 66918

For your social media ready version of this press release:

http://rabobank-food-agribusiness-research.pressdoc.com

www.rabobank.com/f&a

www.far.rabobank.com

Follow us on Twitter:

@rabofoodagri

NOTE

The report/presentation attached is sent specifically to enable journalists to do their work, i.e. as the basis for an article or news report, or as preparation for a telephone or personal interview with a content expert. In line with good journalistic practice, a reference to the source would be appreciated

Please note that is it expressly forbidden to forward the attached report/presentation in any form to third parties, or to publish this report either partially or entirely on a website.

Rabobank has recently updated the distribution lists for Food & Agribusiness Research reports. If you have no interest in further receiving this information, please let us know and we will remove your email address promptly.

Quotes
"Sugar stock levels are high at both origin and destination. Lack of import demand, despite falling international sugar prices, reflects high stockpiles at destination, this in turn is resulting in a large build-up of stocks at origin."

— Rabobank Sugar Analyst Yong Chang