EU sugar market expected to be in deficit

EU sugar prices reported by the European Commission continued to fall in January, reaching €557/t ex-works (£436/t). This reflects the low prices that were agreed for 2024/25 sugar last summer.

This is reported by nfuonline.

However, spot sugar prices have recently shown signs of recovery and are now believed to be above this level.

The low sugar prices in 2024/25 have put pressure on EU beet processors, with both Sudzucker and Agrana reporting losses in the fourth quarter of 2024. In this context, Agrana recently announced the closure of two of its plants in Austria and the Czech Republic.

These financial difficulties will lead to a reduction in beet prices across Europe in 2025/26 and an expected reduction in beet area.

GlobalData predicts a reduction in beet area of ​​around 7-8%; others believe the result will be closer to 5%. In any case, this should put the EU-UK market balance back into a clear deficit, thereby supporting sugar prices relative to 2024/25.

Good weather conditions mean that, unlike last year, farmers will be able to plant beet in time.

Tags: EU, sugar