For the quarter Ending March 2022
North America
In the first quarter of 2022, sugarcane prices increased from the last quarter of 2021. At the commencement of the first half, the price increased as the production was sluggish owing to the poor yield of sugarcane in the US. Consequently, the US was entirely dependent on sugarcane imports from the major exporters, Mexico and Brazil. In addition, the sugarcane yield in Brazil was also less than expected due to poor climate conditions resulting in reduced supply and soaring prices. Also, with the onset of the second half, sugar consumption and demand increased, combined with supply chain disruptions related to the constraints of supply, rising energy, and logistics costs, contributing to the sugar price growth.
Asia Pacific
In the first quarter of 2022, sugarcane prices rose considerably every consecutive month. Increasing demand from downstream industries like sugar and ethanol production contributed to the surging prices of sugarcane. Despite the pandemic, India met the increasing demand for sugar, globally. With surging crude oil prices, Brazil diverted the sugarcane processing more towards producing ethanol than sugar affecting the supply-demand equilibrium for sugar. The sugarcane yield in Brazil was also less than expected due to poor climate conditions, which reduced supply and soared prices, globally.
Europe
White sugar and ethanol production surged the sales and revenue of the major sugarcane producers in the European market. Substantial cost inflation in the product price boosted the market in this quarter. Surging Co-product prices along with forwarding cover for energy offset increased the input cost of white sugar in Q1 2022. Towards the second half of the quarter, higher yield and increased sugar production slowed down the prices in the UK. Supply constraints and increased demand from the end-user industry supported the price trend. In the first quarter 2022, the prices of sugarcane increased. Accelerating demand from downstream, the prices of sugarcane increased drastically in Q1 2022 when compared with the previous quarter.
