Last week, the Gulfood Food Exhibition took place in Dubai followed by the Dubai Sugar Conference that is currently happening, so besides the news following production, consumption, taxes, and prices speculations little movement in the market has been seen.
The overall sentiment so far in Dubai is mildly bullish for sugar for the current year, but looking at the bigger picture it doesn’t seem realistic since the supply side will be much higher with a huge Brazilian crop in the picture, but let’s see.
Side note: Take a quick look at all the sugar products Vesper covers on its’ commodity intelligence platform.
Talking about Brazil, yesterday the government announced that the federal taxes (PIS/COFINS) are partially returning to gasoline and ethanol, not precisely what the market was expecting but still positive for ethanol to gain the market share lost in the last year, but not strong enough to decrease the sugar mix that is estimated around 48%.
Quick tip: Use Vesper’s free calculators, to for example calculate the Import Parity Raw Sugar Cost.