Nordzucker Post 04/2020 - 10 August 2020
World market prices show slight recovery – higher volumes expected in the medium term
The Corona crisis had caused sugar prices on the world market to fall dramatically. Since April, however, a recovery has been underway again, mainly based on increased demand for oil and thus also for bioethanol. World market demand is currently concentrated in Brazil, where there are real traffic jams in the loading ports. However, congestion is expected to ease after the end of the harvest of other fruits and the concentration on sugar and prices may come under renewed pressure from the quantities then available.A significant decline in demand is expected worldwide this year due to the pandemic. At the same time, we must assume that India and Brazil will increase their sugar production. A production surplus is therefore again expected in the 2020/21 sugar marketing year, which may lead to corresponding new pressure on world market prices.
Prices in the EU stable
Sales volumes in the Nordzucker Group remained slightly below expectations due to the consumer reluctance in April and May associated with the lockdowns in Europe. However, prices remained stable and are significantly higher than last year.