For the first time, home-grown sugar was part of the historic Lord Mayor’s Show and annual procession through the heart of London.

A 30-tonne sugar beet harvester was lent by Suffolk grower Peter Butler to the Worshipful Company of Farmers for the parade.

It is the latest item of big kit which has been paraded through central London, by the Livery Company in the past six years. In earlier years, the display has included a Claas combine harvester, forage harvester, Grimme potato harvester, a PMC pea viner, from Fakenham, and a 10-furrow plough and tractor.

Read more...

A strike over pay at British Sugar factories in the east of England could severely disrupt the sugar refining process.

Workers at British Sugar factories in Wissington and Cantley in Norfolk, and Bury St Edmunds in Suffolk have rejected an offer of 3.5% and are holding out for 5%.

The sugar industry employs more than 10,000 people across the east of England in factories, on farms and in haulage companies, and is worth around £800m to the local economy.

Read more...

British sugar refiner Tate and Lyle is in talks with the Jamaica Cane Product Sales (JCPS), the marketing firm for local producers, for a five-year supply deal, starting with 200,000 tonnes in the 2011-12 crop year.

Paul Worthington, regional technical director for Tate and Lyle, says his company is moving to secure most of, if not all, the sugar to be churned locally.

Read more...

The First State Global Agribusiness fund has an investment in a small sugar miller in Northern Queensland called Maryborough Sugar Factory. We remained committed to the investment throughout the recent tropical cyclone Yasi, as our site due diligence gave us significant insight that we drew upon to make an informed decision.

Read more...

White sugar rose the most in 3 1/2 months in London after a report that Sudan bought 100,000 metric tons of the sweetener.The price was $60 million, according to the report by Sudan’s state-run SMC news agency, indicating that the product was white, or refined, sugar costing $600 a ton.

White sugar for May delivery on the Liffe exchange is $27.90 a ton more expensive than August-delivery sweetener, up from a $19.60 spread at last week’s end.

“There’s buying pressure focused on the May contract in London, which could well be linked to Sudan,” said James Kirkup, director and head of sugar brokerage at Fortis Bank Nederland in London. A 100,000-ton purchase would be a “significant quantity,” he said.

White sugar for May delivery climbed $17, or 3.5 percent, to close at $503 a ton on Liffe, the biggest jump for that contract since Dec. 14. Prices posted a sixth straight weekly drop last week. Raw sugar for May delivery gained 2.8 percent to 17.47 cents a pound on ICE Futures U.S. in New York at 5:50 p.m. London time.

As much as two inches of rain fell in growing areas over the weekend in Brazil, the world’s largest sugar producer, raising the potential for harvest delays, according to Dale Mohler, agricultural meteorologist at AccuWeather Inc. in State College, Pennsylvania. Sugar prices more than doubled last year as excess rains curbed output in Brazil.

Weather Forecasts

The rain is “probably getting people a little edgy,” Mohler said. Forecasts call for drier weather to return next month and into May, he said.

The sweetener has tumbled 33 percent this year as forecasts for improved crop prospects in India curbed demand from investors and importers.

Prices “may have found a floor as a base for a new rise due to ongoing tight fundamentals for the remainder of the 2009- 10 season,” German research company F.O. Licht said in a twice- a-month report.

Cuban raw-sugar output is about 100,000 tons behind plans to produce 1.3 million tons this season, Licht said. Pakistan has produced 2.96 million tons of refined sugar this season to March 17, compared with domestic demand of 4.3 million tons, according to the researcher, which cited Industry and Production Minister Mir Hazar Khan Bijarani.

Robusta coffee for May delivery rose 2.4 percent to $1,371 a ton on Liffe, the highest closing price since Dec. 16.

Traders were probably net short, or betting on lower prices, by 25,000 contracts and have closed 10,000 to 12,000 contracts as prices rebounded, according to estimates by Ralph Hawes, head of the sugar desk at Sucden in London. Robusta has gained 5.5 percent this month.

Cocoa for May delivery increased 1.4 percent to 2,246 pounds ($3,362) a ton.

source: businessweek

Read more...

Raw sugar prices on ICE hit 3-month lows on Tuesday as the market extended recent steep losses and looked poised to test key support, dealers said.Cocoa futures also fell, weighed down by better crop prospects in top grower Ivory Coast, while coffee was steady.

Raw sugar prices have now fallen nearly 30 percent since setting a 29-year high in early February.

"The market was over-bought, and we are now set to trade in a 20-24 cents a lb range," said Andrey Kryuchenkov, a fund manager with VTB Capital in London.

"The market overshot to the upside, the dollar is appreciating, and now we are looking at the Brazil crop," Kryuchenkov added.

Dealers said expectations of a large new crop in the centre-south of top producer Brazil, which starts next month, were dragging on sentiment.

Tobin Gorey, soft commodities strategist for J.P. Morgan, referring to recent deferred buying tenders, said, "I'd be reluctant to pick a floor. Eventually the buyers will emerge."

May raw sugar on ICE fell 0.8 cent or 3.6 percent to 21.46 cents by 1623 GMT after earlier sliding to 21.12 cents, the lowest since early December.

The benchmark front month has fallen nearly 30 percent since early February's 29-year high of 30.40 cents.

"A clear break and close below the 21 cent support in the near to medium term would technically be the 'Titanic' moment of a bull market that recently looked unsinkable," brokers Sucden UK said in a market note on Tuesday.

The contract also fell below the 200-day moving average, currently at 21.91, for the first time since early April 2009.

Dealers said the market was waiting to see if key buyers such as Pakistan and India would step up purchases following the sharp pullback in prices.

They noted fundamentals remained supportive with a large global deficit widely forecast for 2009/10, although the market may move into a closer balance in 2010/11.

"I do think the market was overdone to the upside, even with the bullish fundamentals," one dealer said.

May white sugar on Life fell $23.50 or 3.7 percent to $612.80 a tonne after hitting a three-month low of $606.00.

Dealers said there appeared to be a growing trade dispute between the European Union and the Global Sugar Alliance which includes Australia, Thailand and Brazil.

EU officials have put on hold talks with the world's top sugar exporters over the European bloc's controversial exports of the sweetener beyond agreed quota levels, an Australian sugar industry official said on Tuesday.

source: forexyard

Read more...

Any day now sugar beet growers will learn whether the NFU and British Sugar have agreed the basis for a new multi-year contract to end the disruptive cycle of annual negotiations.

But what is being debated, why is a solution so evasive and is agreement likely this spring?

The battle for a long-term replacement for the Inter-Professional Agreement has run for years, with annual stand-offs over the price and associated technical issues.

Grower power

Grower power has played its part. In 2008 over 300 growers, representing 15% of the UK crop, met on a Fen farm outside Whittlesey, Cambridgeshire. Their actions helped pave the way for a £2/t price rise, worth £14m to growers.

Last year's hardline approach by the NFU called for £34.50/t. That left BS "at a loss to understand" how such a price could be arrived at. Wheat and oilseed prices would need to double for the profitability gap with beet to be maintained, BS's Karl Carter commented.

Another meeting at the East of England showground, near Peterborough last September saw 600 growers responsible for over two million tonnes of beet air their views, including the fear that bioethanol was diluting the core beet price.

BS and the NFU subsequently agreed a price of £26/t for the 2010/11 crop, plus a "face saving" £1/t in extra transport allowance. Growers saw that as £27/t overall, matching 2009/10. Contracts were duly signed and returned.

But grower power only goes so far. Producers have widely differing capabilities and different price aspirations. And BS knows that.

In recent years it made no secret of the fact that it had expressions of grower interest in 350,000t of extra beet production. That is over and above the existing 800,000t of temporary tonnage - equivalent to 14% of the national crop - which will be grown without the £1/t extra transport payment this year.

Indeed, that extra £1/t will only be added to the rest of the crop if the basis for the new multi-year agreement can be struck by the self-imposed deadline of 31 March.

Why the problem?

A big part of the impasse has been grower frustration that BS won't share the fruits of what most perceive to be a significant rise in profits in the sugar sector.

Profitability soared 21% last year for the sugar division of Associated British Foods, BS's parent company. Prospects for the sector were good, noted the company, with EU sugar policy settled and sugar supply and demand broadly balanced. Currency exchange rates were helping too.

In the UK, BS's sharp recovery in profit reversed a declining trend over recent years. The main drivers of the turnaround were robust sales, good factory performances, a strong euro, a reduction in the restructuring levy, favourable energy costs, favourable UK growing conditions and extra contributions from the combined heat and power plants at Bury and Wissington, supplying electricity to the grid at high prices.

Seeking resolution

Last October Richard McDonald, then director general of the NFU, and Mark Carr, chief executive of BS Group, agreed that the old approach to annual negotiations was "untenable" and that a fresh start was needed.

The £34.50/t call from the NFU and the associated standoff with BS was the old way of negotiating, admitted NFU sugar board chairman and Cambridgeshire farmer William Martin.

The new negotiations aim to secure the "ingredients for a longer-term contract", replacing annual negotiations up to and including the 2014 crop. From October 2015 a new EU sugar regime is expected to be implemented.

Indeed, a united front to debate the future of the EU sugar regime, which includes the last remaining commodity quota, is a further good reason for securing a new contract, argues Mr Martin. "We want to stand shoulder to shoulder with BS when we are arguing the industry's case in Whitehall and Brussels, to secure benefits for us all, rather than squabbling amongst ourselves."

That is a view which BS shares. "We have been involved in extensive discussions and continue to work with the NFU, remaining committed to coming to a final agreement on the way forward for the sugar industry," a spokesman told Crops in early February.

A third party moderator has been appointed to help keep the negotiations on track. If agreed, the new four-year framework will not be reviewed for two years, after which either BS or the NFU could instigate a limited review of some elements.

But if the framework for a new contract is not agreed by 31 March, the old IPA rules allow for a resolution to be imposed by a third party, possibly DEFRA. Neither side wants that.

The negotiations are private and little has been leaked. But five key issues need resolving:

1. Price mechanism

This is the most ticklish part of the negotiations. A flexible formula has been proposed, to account for growers' costs and the relative profitability of other crops. A fixed price or minimum price contract could result for each campaign, replacing the current "blank page" annual negotiations.

In the past, BS said it was happy to use grower costs in a formula, but suggested growers were not sufficiently realistic. Its own survey of 250 growers showed an average net margin (pre-rent and finance) of £489.05/ha, with the top 25% of growers achieving £964.90/ha.

But growers note that the "cost-plus" approach did not work in potatoes and ask whether all costs would be included, such as road repairs after heavy machine use and lower yields in subsequent wheat crops? Index linking to inflation may be better, some say.

Furthermore, when pitching a beet price to keep the crop competitive in the rotation, is wheat the best benchmark? Should vegetables and potatoes feature too? And what wheat price should be used - a November futures price, or something later, to reflect later harvesting?

So far BS has been reluctant to include changes in its processing costs in any formula.

2. Haulage

The NFU and BS jointly commissioned an independent study to investigate the potential for greater efficiencies in haulage, the conclusions of which are now being debated. An ex-farm price, effectively transferring haulage costs to BS, together with an end to transport allowances, have been favoured by the NFU in the past.

3. Crown tare

The NFU is keen to see payment for everything growers grow, based on whole beet sampling. "We think it makes sense for the whole industry if growers deliver every bit of beet that is grown and are paid for it," says Mr Martin. Technical innovations, like Grimme's new flail-only topper, with no scalping knives, add to that argument.

Currently manual crown sampling establishes what proportion of delivered beet is deducted as crown - the top part of the beet that is less suitable for processing. BS has said its existing contribution for crown sugar is "pretty exclusive" in Europe.

4. Late delivery

More appropriate compensation for late deliveries is being sought, to ease the impact on growers of the longer processing campaigns BS favours to make the most of its investments in processing factories. Last year its Newark factory took beet as late as mid-March, for example. At the time BS said the extra £3/t it paid would more than compensate growers for losses, provided they had played their part in protecting crops from the elements.

5. Temporary volume procedures

This is a complex area, involving BS purchasing additional beet, beyond quota tonnages, primarily for bioethanol production. It attracted little interest in the first year and then substantial over-subscription in the second year. A clearer system, with clearer rules, is wanted by growers.
Endgame

While cagey about progress, both sides are hopeful about a positive outcome. An end-game was felt to be in sight as Crops went to press in early February.

But the last word goes to Mr Martin. He urges growers not to simply tick off concessions won from BS or to count pound signs. "If people just look at this negotiation in terms of achieving such-and-such a benefit, or a certain price rise, they are missing the point. It's not about winners and losers. We want to go beyond that and believe there is real scope here to unlock some significant benefits for the whole industry."

The clock is ticking. Growers will soon know what benefits have been achieved.
Beet debate

• £26/t for 2010/11

• £1/t bonus if talks successful

• 31 March deadline

• Key issues: Pricing formula; campaign length; transport and temporary volumes.

• New regime after 2014 crop

source: fwi.co.uk

Read more...

Minister of Agriculture Robert Persaud yesterday labelled European Union Ambassador Geert Heikens’ “disquiet” over reports about the sugar industry as hypocritical since he said the envoy is fully aware that most of the problems stem from the “unilateral and abrupt price cut of thirty-six percent” by the European Commission (EC) for sugar from this country.

The minister noted that the full price cut, which would take effect from this year, will result in an annual loss of income for Guysuco of some $7B.

Persaud was responding to a report in yesterday’s Sunday Stabroek where Heikens said a regular and in-depth analysis of the sugar industry is needed as a necessary step forward, and also referred to reports in the local press about the state of the sector as disquieting.

Heikens underscored the importance of sugar to the local economy calling it a “pillar” while noting that the EU Delegation understands that continuous efforts to make the sector competitive and viable are essential. He said also that the European Union-funded Multi-annual Sugar Programme, which supports the government’s efforts to improve the competitiveness and viability of the local sugar industry, continues in 2010.

He stated that the programme has a total envelope of Euro 670 million for 18 ACP sugar producing countries, of which Euro 90 million (Guy$27 billion, US$130 million) has been allocated to Guyana. The decisions for the Euro 90 million are spread over 5years, he noted, with various disbursements annually.

According to the minister the loss of income for the corporation will become a reality even as the EC’s promise of support for the accompanying measures has been limited.

“The situation has been aggravated by the inflexible stand taken by the EC in terms of (Guyana) qualifying for their resources,” the minister said. He pointed out that if the Guyana Government had to await the flow of resources that the EC had promised to compensate for the price cut, which he said was very inadequate, it would not have been able to undertake the major restructuring and modernisation effort to better prepare the industry for the price cut.Minister Persaud stressed that the sugar industry has always encouraged constructive discussion with all of its stakeholders and as such neither the EC nor its representative could now conveniently “wash their hands” of the challenges facing the industry. The minister said that he was concerned about what he said was the dismissive attitude the ambassador evinced for the efforts being made to turn around the industry. He the turn-around process requires much time, hard work and commitment by all stakeholders and while he recognises that there are factors other than the price cut which are affecting the industry, these are being addressed in the industry’s turn-around plan.

Responding to questions on the industry posed by Stabroek News, Heikens had said it is important for an analysis to be done, in addition to comparisons being made with other sugar producing countries. This, he said, can be used to update the “Blue-Print for success and which sets realistic targets, initiatives and actions.”

source: stabroeknews

Read more...

The good news was that sugar prices were down in first fortnight of December 2009 when cane crushing season started in full force. From Rs 35/kg in wholesale they were around Rs 31/in Delhi — a decline of 11 per cent in a fortnight — but still much higher (95 per cent) than Rs 16/kg of July 2008.

The not-so-good news is that — as 2009 says goodbye — prices in Delhi have again touched Rs 34-35/kg. Due to lower sugarcane output, higher cost and likely halting of crushing by March 2010 — domestic prices are bound to recoil up during April-November 2010 to levels unseen hitherto.



The bad news is that international prices are firm — kissing almost $700 at LIFFE on December 24, 2009 — and are likely to harden as demand pressures from importing nations get injected into tight supplies from Brazil and Thailand.

India, Indonesia and Pakistan have openly declared their shortages and compulsions to import. Indian import of raw/white sugar may touch 7-8 million tonnes by September 2010 — (23 million demand against production of 15-16 mt). Whispers of 2-3 mt of import by China are also being heard.

Today imported sugar will cost Rs 37-38 a kg as against Indian price of Rs 34 a kg. But trend reversal will be witnessed in April-October 2010 when Indian prices will move vertical — faster than international values.

Money can be made by Indian importers by prudently positioning for white/raw sugar ex London/ New York exchanges.

But it is not all that simple. Prices in London/ New York and Delhi are not synchronous. Back to back parity is awfully missing. Delhi will follow London in jerks and jolts after 45-60 days.

Wholesale prices rose by 25 per cent between April-October 2009 (from Rs 23 to Rs 29 a kg). In 2009-10, with a “carry in” of one month only and import now being at Rs 37-38/ a kg, sugar in bulk might breach Rs 45/kg during non-crushing season of 2010 — if last year's formula is applied. Possibility of touching Rs 50/kg cannot be ruled out. For a trader this trend is going to be friend provided sugar is bought basis London (LIFFE) now for Feb-March delivery, with intent to sell after April 2010. For raws, it will be basis New York.

Mantra is — buy London basis with intention to sell Delhi (read India) in forward. Sugar trading can be sweet and sweeter. It could be risky too — due to unexpected intervention by the Government — but then risk and reward go together.

Sugar industry is left with no option but to transfer significant amount of burden of enhanced cost/ poor capacity utilisation to the consumers and also to take advantage of the market dynamics. Stock market reports are suggesting substantial increase in sales turnover and profitability of all major well managed sugar producers/refiners in the country due to higher per tonne sale value and profitability. Farmers are demanding market determined remunerative price — not Fair Remunerative Price (FRP) or State advisory price (SAP) — for the sugarcane and they are being supported by the Gur and Khandsari business. So, sugar business is in the money for at least next one year.

Enhancing availability
If policy makers are thinking of enhancing availability of sugar in the domestic market as a short-term solution, then it cannot be improved by merely Government importing and resorting to subsidised sale. Subsidised sales will hurt the sugar industry and disincentivise these corporate from importing raw sugar — and that will accentuate the existing short supply. (Operational constraints have compelled some mills in UP to wash out existing contracts at profit as reported in Business Line of December 24, 2009.) Moreover, import agencies of Government lack distribution channels in the local market and even if they have such routes, they are highly inefficient and therefore the imported commodity does not reach the consumers fast to depress the local prices.

These subsidised operations have been “crowding out” the private trade, and its entrepreneurial skills. That is why a very effective role of private traders in sugar import is needed.

Excessive speculation can be curbed by efficient imports, revoking quantitative storage limits and by allowing private distributors and retailers to work without fear of Damocles sword. When the Government announced duty free import of one mt of white sugar from April 2009, traders have not imported more than 350,000 mt so far. It is the fear of the Government action that is preventing importers to aggressively bring sugar in the Indian market.

Under present circumstances, short term spike in the international and domestic prices cannot be ruled out. Any interventionist measures may not work. Policy makers may, therefore, act as facilitators and reasonable regulators, dispel fear phobia from private trade and supplement it with supply side macro management, in the long term interest of lowering sugar prices.

source: thehindubusinessline

Read more...

The company intends to build several plants that would process bagasse, a byproduct of sugar cane production, into small, dense pellets that can be burned for fuel.

A trio of Italian and British entrepreneurs are advancing a $114 million plan to turn the waste from Brazilian sugar cane production into pellets that can be burned in coal-fired and thermal plants.

Their São Paulo-based start-up, Brazilian Pellet, expects to finalize a $45.5 million loan syndicated by the Inter-American Development Bank that would provide two-thirds of the financing for its first burst of development, in the first quarter of 2010.

Several million dollars in seed money came from the three founders, Diego Maurizio Zannoni, Giancarlo de Filippo and David J. Instance, through their Luxembourg-based holding company.

The company intends to build several plants that would process bagasse, a byproduct of sugar cane production, into small, dense pellets that can be burned for fuel.

Mr. Zannoni, an aeronautical engineer, said he has a patent pending on the process which he developed over a two-year period, and tested successfully in a pilot project. He said that Essent Trading, a Dutch energy trading company owned by the German utility RWE, certified the pellets as meeting European Union standards for solid biofuels.

Mr. Zannoni also said that Brazilian sugar mills burn most of their own bagasse to create energy in cogeneration plants, and increasingly have been selling the excess power to the national grid. But 20 percent of the excess bagasse, or about 25 million tons, is left to waste, Mr. Zannoni said.

Brazilian Pellet plans to begin production in the third quarter of 2010 in its first plant in São Paulo, home to more than half the production of Brazil’s sugar cane industry — the world’s largest.

By 2015, Brazil Pellet plans to reach 520,000 tons a year of pellet production, an amount that would produce 2,420 gigawatt-hours annually.

The company plans to sell the pellets to companies in industries like textiles, dairy and brewing that generate steam to power turbines in their manufacturing process.

In Europe, it plans to initially sell the pellets to biofuel traders like Essen, which would then sell it to coal-fired plants. Such plants are increasingly employing biofuels to help them meet tightening European Union standards for carbon emissions. The E.U. has called for 20 percent of total energy consumption to come from renewable sources by 2020.

The European Biomass Association predicts that by 2020 the European Union will use 100 million tons a year of pelletized biofuels from about 13 million tons this year. Now, most European biomass pellets are made from sawdust, a byproduct of the wood processing industry, Mr. Zannoni said.

The company said its process is carbon neutral because the bagasse, if not used, would break down and release dangerous emissions.

“If you just let the bagasse decay it releases methane, and that’s 20 percent more dangerous to the ozone layer than carbon dioxide,’’ said Ivan Nuñez, a banker with the IDB arranging the financing for Brazilian Pellet. “So, burning it instead gives you carbon credits.’’

In fact, a study released last month by the U.N.E.P.’s International Panel for Sustainable Resource Management suggested that biofuels made from production residues, like bagasse, were generally considered beneficial for the environment.

“The nice thing about bagasse is that it’s just garbage,’’ said Gloria Jacobovitz, an adviser to Brazilian Pellet. “It’s different from other biomass because it’s a waste product rather than a plant grown specifically to create energy.’’

source: greeninc.blogs.nytimes

Read more...

Sugar futures rose, extending a rally to the highest in more than three years, on concern that global supplies will tighten further as Brazil fails to make up for a production deficit in India.

Worldwide demand will exceed production by 6.1 million metric tons in the year ending Sept. 30, compared with a previous forecast of 4.7 million tons, FCStone Group Inc.’s Brazilian unit said on July 20. Inadequate rainfall is hurting the outlook for the cane crop in India, while excessive rain may slow harvesting in Brazil’s Center South, analysts said.

“This is a continuation of the marketplace being unsure about supplies,” said Craig Ruffolo, a vice president at McKeany-Flavell Co., a commodity consultant and broker in Oakland, California. “India is down with production and there’s only so much sugar Brazil can produce.”

Raw-sugar futures for October delivery rose 0.27 cent, or 1.5 percent, to 18.26 cents a pound on ICE Futures U.S. in New York. Earlier, the price reached 18.39 cents, the highest for a most-active contract reached on April 3, 2006. Today’s gain was the fourth straight.

The price may reach 20 cents in a few weeks, Ruffolo said. “Mills are popping up in Brazil but they’re mostly ethanol- driven,” he said.

Rain in Brazil

In the next week, showers and thunderstorms will “disrupt the cane harvest and impact the drying of the crop in Sao Paulo and Minas Gerais,” forecaster Meteorlogix LLC said today.

Unexpected rain prompted growers in Brazil’s Center South, the world’s biggest-producing region, to suspend harvesting for several days in the second half of June, forcing sugar mills to slow production, the region’s sugar and ethanol industry association said on July 15.

India’s sugar output may be 16 million to 17 million tons next year, trailing an industry forecast of 18 million to 19 million tons, said Gautam Goel, the managing director at Dhampur Sugar Mills Ltd., citing below-normal rainfall. This year, India may produce 14.6 million tons, down from 26.4 million tons last year, the country’s Sugar Mills Association has forecast.

Sugar has surged 55 percent this year, the third-biggest winner among the 19 commodities tracked by the Reuters/Jefferies CRB Index, as production declines forced India to import the sweetener for the first time since 2006. Only gasoline and copper have posted larger gains.

In London, white, or refined, sugar for October delivery rose $6.30, or 1.3 percent, to $474.90 a metric ton on the Liffe exchange.

source: bloomberg

Read more...

LONDON — Sugar and sweeteners company Tate & Lyle PLC said Thursday that its fiscal first quarter had started well, but that the outlook for the full year was uncertain.

In a trading update for the three months ending June 30, the company said pretax profit before exceptional items was in line with the same period a year earlier and ahead of expectations.

The company said it had reduced its net debt to 1.07 billion pounds ($1.77 billion) from 1.23 billion pounds on March 31.

"In the current economic environment, visibility remains limited to the short term, although the year has started better than we had anticipated, and demand from food and beverage customers remains resilient," the company said.

It added that second-quarter results were likely to be below the same period a year earlier when the company benefited from a spike in commodity prices.

Tate & Lyle shares were up 5.5 percent at 328.75 pence on the London Stock Exchange.

Graham Jones, analyst at Panmure Gordon & Co., said the 2010 pricing round for high-fructose corn syrup was a major uncertainty for the company.

"The risk must be that with extra spare capacity this year, buyers will drive margins lower," Jones said.

He also noted that Tate & Lyle said nothing about its investment in ethanol and the timing of the opening of its plant in Fort Dodge, Iowa. In March, Tate & Lyle announced that it was stopping work on the $260 million plant because of a struggling ethanol market.

The company said its American food & industrial ingredients results were "marginally below" a year earlier, with lower co-product sales partially offset by favorable exchange rate movements, the company said. In Europe, profit for food and industrial ingredients was up from last year.

"While the results will undoubtedly be helped by strong foreign exchange translation year on year, the inference for us is that Tate may now be past the trough in North America," said Martin Deboo, analyst at Investec Securities, adding that the update was reassuring.

"We will be reviewing our forecasts — which are at the bottom end of consensus — in the light of this statement. We are inclined to upgrade modestly, but counsel investors to be aware that Q1 trading will have benefited from strong positive foreign exchange."

source: latimes

Read more...

7th World SugarTrade Meets in Singapore and Shares Groundbreaking Insights Set to Alter Direction of Global Sugar Marketplace

Will Sugar Fundamentals remain in their current bullish trend? The world's leading sugar traders, producers, consumers and fund managers will meet in Singapore to address this key question, and discuss current sugar prices, trends and market prospects at the 7th World SugarTrade Summit on September 29-30, 2009.

Singapore - The 7th World SugarTrade Conference convenes in Singapore on September 29-30, 2009 to make sense of the times ahead for the world sugar industry and marketplace.

Despite the global economic slowdown and credit crunch, Sugar futures gained this year over a drop in sugar supply output, and India's transition into a net importer for the first time in three years. India is the world's largest consumer of sugar and biggest producer after Brazil. Sugar prices will also strengthen on increasing interest in trading commodities.

With the global sugar production deficit destined to influence the market in the fourth quarter, the 7th World SugarTrade conference meets at the right time to offer on the minute market insights to sugar stakeholders.

Leading industry experts from Brazil, Thailand, India, the EU, and other leading Sugar hubs will address the audience on sugar prices, domestic and international sugar industry developments at critical panel discussions, which will touch on:

- Sugar Market Fundamentals including Sugar Prices, Sugar Supply Deficit & current global market development
- Bankers & Traders insights on Financing availability and impact on sugar trade.
- The Sugar production outlook in Brazil - Will Brazil make enough sugar to cover the global deficit?
- Indian Sugar deficit: The transition of India from Exporter to Net Importer and How much will India actually import.
- Policy initiatives, market drivers & raw sugar trade in Indonesia, USA, Thailand, Africa.
- The latest EU Sugar Regime
- Oil Price Volatilities, Freight Market developments and the impact on the Global Sugar Industry and Sugar Freight.
- The challenge of Stevia, a zero-calorie, all-natural sugar substitute and implications on the global sugar marketplace.

The world's leading financiers, traders, commodity brokers, sugar producers, millers, refiners, key officials of government trading corporations and shipping executives have already confirmed or reserved their seats for 7th World SugarTrade on September 29-30, 2009.

The conference is 2009's sugar industry networking platform, and insights shared and connections made at the conference will alter the course of the sugar industry in the months ahead.

Those seeking more information and opportunities to participate as delegates, media partners, exhibitors and / or sponsors at 7th World Sugar are urged to submit their registrations, enquiries and proposals at 7th World SugarTrade and market meeting in Singapore or contact Ms. Jaime Ng, Marketing Manager at +65 6346 9145.

source: cmtevents

More Information

Read more...

Fiji’s sugar industry has been given the assurance by its traditional buyers that they are prepared to still take its products, Fiji Sugar Corporation Chairman Bhoo Gautam sais in Nadi.

He told the Fiji Institute of Accountants Congress at the Sheraton Fiji Resort, Denarau the traditional sugar markets in the United Kingdom are ready to buy whatever the quantity Fiji produces.

“Our traditional sugar buyers in the UK have told us that we have to produce more as they are able to accommodate them,” Mr Gautam said.

However, he said, the buyers have to be given a one year notice in order for them to work out their plan.

Although the European Union will reduce its market price by 36 per cent on October 1, Mr Gautum said Fiji has no problem at all.

He said the assurance by the buyers come as a good news to the sugar industry.

Mr Gautam said the industry can recover but it is not going to be easy. The sugar industry contributes heavily to the economy.

“I can assure that we are going to get back to our old form. Personally I feel will be able to do that with the short period of time that I have spent in the industry.

“The assistance received from the government has been of great help to the industry,” he said.

Minister for Commerce Aiyaz Sayed Khaiyum said revamping of the sugar act was a way of improving the industry.

“It is about time Fiji gets away from the old laws and get to the modern day system,” Mr Sayed Khaiyum said.

The price of sugar received by the cane farmers has been subsidized heavily by the European Union.

source: fijisun

Read more...

* Industry buying pressure seen in robustas

* Cocoa trade sees no market impact from ICCO forecast

LONDON, - Coffee and sugar futures fell on Thursday, pressured by a stronger dollar, while London cocoa rallied on a weaker pound against a backdrop of steady West African mid crop supplies.

Dealers said sugar was consolidating after touching a near three-year high earlier this week.

The stronger dollar and a weaker close on ICE on Wednesday night meant that London robusta futures lost ground on Thursday, dealers said.

"We've traded down to very close to the recent low (in July robustas) of $1,503 per tonne, and we've hit $1,504," one London dealer said.

"So we're still confined within a $50 range."

The robustas market was tracking ICE arabicas, pressured by the strengthening of the dollar against a basket of currencies.

Dealers talked of steady industry buying interest in robustas.

One London dealer said a Reuters report quoting Colombia's Farm Minister as saying Colombian arabicas output should pick up after favourable weather early in 2009, could have triggered selling of arabica futures late on Wednesday.

"If he (Minister Andres Fernandez Acosta) is putting people at ease about the crop size, the market can expect more Colombian hedging to come in," the dealer said.

London July robusta coffee futures were down $18 to $1,515 per tonne in slim volume of 1,348 lots at 1221 GMT, while ICE July arabicas were down 0.4 cent to $1.3510 per lb.

RAWS TAKE BREATHER

Raw sugar futures took a breather from a rally to a near three-year high of 16.03 cents per lb on Tuesday.

"We're expecting a bit of a pullback," one London sugar dealer said.

"We are still constructive on sugar in the longer term."

The dealer saw nearby support in ICE July raw sugar futures at 15.50 cents per lb.

The contract rose to a peak of 16.05 cents per lb on Tuesday, the highest level for the benchmark front month since July 2006.

Sugar futures are likely to be well supported in the coming months, bolstered by demand for the sweetener from India and Pakistan, dealers said.

ICE July raw sugar futures were down 0.14 cent to 15.63 cents per lb at 1224 GMT, while London August white sugar was down 70 cents to $451.20 per tonne in slender volume of 956 lots.

London cocoa pushed higher, supported by the weaker pound.

"London is up partly due to currency," one dealer said.

Dealers saw no market impact from the International Cocoa Organization's downward revision on Wednesday of its global 2008/09 cocoa deficit forecast.

The ICCO on Wednesday revised its forecast for the 2008/09 global cocoa deficit to 84,000 tonnes from a previous forecast deficit of 193,000 tonnes.

Dealers said the downward revision in the deficit forecast was in line with the market consensus.

London September cocoa futures were up 55 pounds to 1,698 pounds per tonne, while ICE July cocoa was up $51 to $2,560 per tonne at 1226 GMT.

SOURCE: reuters

Read more...

An automatic analysis method for real-time remote sensing and monitoring of sugar-cane harvesting is being developed. The goal is to design a decision-aid tool based on the expert knowledge available in the sugar-cane industry, which can also be adapted to other fields such as wine growing and forestry.

On the island of Réunion, sugar cane covers over 25 400 hectares. The harvest period can span six months of the year. However, once the cane has been cut, it must be processed in a factory within 48 hours, otherwise decomposition hinders the industrial crystallization process. Because the factories operate with zero stock and at constant output levels, the companies increasingly use data supplied by satellite-image experts to estimate the progress of harvests on the island.

The imaging program, managed by CIRAD (Montpellier, France), is intended to develop remote-sensing methods and products to meet the needs of the sugar-cane industry.
Researcher Mahmoud El Hajj has developed an automatic analysis method for the satellite-image time series using FisPro software, developed in 2000 by Cemagref (Fresnes, France) and INRA (Paris, France).

FisPro software serves to build fuzzy-inference systems and then use them to process data, in particular for simulation of physical or biological systems.
Whereas standard image analysis of data from remote sensing requires several days of work by an expert, the new tool needs just a few hours to process all sugar-cane fields.

source: vision-systems

Read more...

Oil and gold prices extended their recent rallies this week as investors scooped up commodities on signs of a pick-up in a global economy that has suffered its worst downturn in decades.

OIL: Oil prices jumped to six-month highs above 62 dollars a barrel in New York this week, lifted by rising stock markets, a sliding dollar and news of falling energy inventories in the United States, dealers said.

As the week drew to a close, attention switched to a meeting of the OPEC cartel to take place on Thursday.

New York crude reached 62.26 dollars on Wednesday -- the highest level since mid-November -- after data showed a fall in oil inventories in the United States, the world's biggest energy-consuming country.

US crude reserves tumbled 2.1 million barrels in the week ending May 15, far more than market expectations for a drop of 700,000 barrels.

"The bullish (positive) sign is that we've seen two consecutive weeks of falling inventories in the US," Tony Nunan, an energy risk manager at Mitsubishi Corp, said on Friday.

Oil also won support from a weak greenback which makes dollar-priced crude cheaper for buyers holding stronger currencies -- and therefore tends to stimulate demand for the commodity.

SUGAR: Sugar prices gained and are set to rise further after India's crop failure.

Sugar prices are up 30 percent since the start of the year in the wake of a poor Indian harvest that has dented supplies after years of overproduction.

"We do believe the risk of prices moving higher is significant," said Toby Cohen, analyst at Czarnikow Group.

New York sugar prices had struck a near three-year high of 16.06 cents a pound last week.

"The drastic underperformance of the 2008/09 Indian harvest alongside those in several other northern hemisphere locations has laid the way for a global (sugar) deficit of historic proportion, thus offering a seemingly irrefutable fundamental case for strong price performance," according to Barclays Capital analyst Nicholas Snowdon.

By Friday on LIFFE, the price of a tonne of white sugar for delivery in August increased to 440.30 pounds from 435 pounds a week earlier.

On NYBOT, the price of unrefined sugar for July gained to 15.62 US cents a pound from 15.45 cents.

The euro on Friday rose above 1.40 dollars for the first time since the start of the year owing to concerns about high US debt, dealers said.

In afternoon London trade, the European single currency hit 1.4005 dollars -- the highest level since January 2.

The dollar's decline has accelerated since Thursday "after speculation increased that the US could potentially face a credit rating downgrade," said Lee Hardman, currency analyst at The Bank of Tokyo-Mitsubishi UFJ in London.

While there was no specific news about the US sovereign rating, a warning by Standard & Poor's on Thursday of a possible downgrade of Britain's rating prompted fears the United States might be next, dealers said.

Next Thursday meanwhile, OPEC holds a meeting in Vienna to discuss whether to alter the amount of crude the cartel is pumping.

The Organization of Petroleum Exporting Countries, which produces some 40 percent of global supply, has steadily cut output since late last year in a bid to steady prices which have tumbled from record highs above 147 dollars a barrel reached last July.

Libya's envoy to OPEC, Shukri Ghanem, told AFP on Thursday that the meeting's outcome remained uncertain as member nations had yet to indicate a clear stance.

"Everyone has not made up their minds. They are just watching carefully the movements in the market, the different signals," he said.

By Friday, on the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in July stood at 60.93 dollars a barrel compared to 58.35 dollars for the expired June contract a week earlier.

On London's InterContinental Exchange (ICE), Brent North Sea crude for July jumped to 60.08 dollars a barrel from 58.07 dollars a week earlier.

PRECIOUS METALS: Gold prices reached the highest point in almost two months, benefiting from its safe-haven status amid a weak dollar.

Gold reached 961.33 dollars an ounce -- a level last seen on March 26.

"Prices rose across the board... with gold and silver being the strongest performers," said analysts at Barclays Capital.

"Gold prices have reverted to tracking currency movements in recent sessions... as the dollar weakened to its lowest level since the start of the year against the euro amid fresh concerns of credit downgrading."

Meanwhile a report by industry body the World Gold Council said investment funds drove demand growth of the metal during the first quarter.

By late Friday on the London Bullion Market, gold rallied to 959.75 dollars an ounce from 929.50 dollars a week earlier.

Silver grew to 14.83 dollars an ounce from 13.92 dollars.

On the London Platinum and Palladium Market, platinum climbed to 1,149 dollars an ounce at the late fixing on Friday from 1,109 dollars.

Palladium gained to 234 dollars an ounce from 224.50 dollars.

BASE METALS: Base metals prices diverged.

Any gains for base metals resulted from "another sharp drop in the dollar and continued declines" in stockpiles, said MF Global analyst Edward Meir.

By Friday on the London Metal Exchange, copper for delivery in three months rose to 4,582 dollars a tonne from 4,352 dollars a week earlier.

Three-month aluminium fell to 1,437 dollars a tonne from 1,515 dollars.

Three-month lead climbed to 1,425 dollars a tonne from 1,420 dollars.

Three-month tin grew to 13,750 dollars a tonne from 13,595 dollars.

Three-month zinc dipped to 1,492 dollars a tonne from 1,498 dollars.

Three-month nickel increased to 12,642 dollars a tonne from 12,250 dollars.

COCOA: Cocoa prices advanced in London and New York.

"Providing some support was a report of an outbreak of black pod disease in Cameroon, which will potentially cut mid-crop growth forecasts up to 20 percent," said analysts at Barclays Capital.

"While not a significant production loss in terms of the global market balance, such an announcement will have helped marginally refocus market attention onto the cocoa market's troubled supply side."

By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in July rose to 1,616 pounds a tonne from 1,607 pounds a week earlier.

On the New York Board of Trade (NYBOT), the July cocoa contract increased to 2,432 dollars a tonne from 2,335 dollars.

COFFEE: Coffee prices extended recent gains.

"New York (futures) continued to rally with the help of the weaker dollar" and tightness of Arabica-quality coffee, said Sucden analyst Ryan Benett.

By Friday on LIFFE, Robusta for delivery in July climbed to 1,526 dollars a tonne from 1,500 dollars a week earlier.

On the NYBOT, Arabica for July jumped to 138.2 US cents a pound from 127 cents.

GRAINS AND SOYA: Grains and soya prices climbed.

Allendale analyst Joe Victor said it had been an "ideal" week for prices, with "crude oil higher, (the) dollar lower and support of the stock market."

Maize is used to make ethanol, a cheaper alternative to petrol used to power cars and that is refined from crude oil.

By Friday on the Chicago Board of Trade, maize for delivery in July rose to 4.29 dollars a bushel from 4.17 dollars a week earlier.

July-dated soyabean meal -- used in animal feed -- increased to 11.73 dollars from 11.30 dollars.

Wheat for July advanced to 6.07 dollars a bushel from 5.77 dollars.


RUBBER: Malaysian rubber prices dropped in quiet trade.

On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 160.10 US cents a kilogramme from 160.75 cents a week earlier.

source: news.my.msn

Read more...

LONDON, - Cocoa futures bounced on Friday after a sharp decline, underpinned by industry buying, while sugar edged lower as traders digested an International Sugar Organization forecast predicting a smaller deficit in 2009/10.

Arabica coffee futures reversed early losses on concern over a shortage of high-quality Colombian beans, dealers said.

Cocoa futures staged a recovery as the market failed to break convincingly below key support levels.

"I think the big focus of the market recently has been on the very poor grindings data, but it does look as if prices are struggling to fall through the $2,300 level," Barclays Capital analyst Nicholas Snowdon said.

"There might be dips beneath ($2,300) but there definitely seems to be strong support around there," he added.

July cocoa on ICE settled $28 higher at $2,338 a tonne. The contract has fallen sharply since early April, when it traded as high as $2,796, depressed by bearish data on grindings and an improved crop outlook in West Africa.

"The grindings figures are slightly distorted by the heavy destocking that has occurred by end producers. We are probably through the worst of the grindings data and we will see a pick-up in grindings as the year progresses," Snowdon said.

Prices in London closed higher with September up 16 pounds at 1,618 pounds a tonne. The contract touched 1,585 pounds on Thursday, a five-month low for the second position.

Sugar futures fell on a firm dollar and as traders took note of the ISO's first, preliminary forecast for the 2009/10 global sugar balance, showing a smaller deficit of 4.5-5.0 million tonnes after a 7.8 million tonne deficit in 2008/09.

ETHANOL
One trader privately predicted a 2-3 million tonne deficit for 2009/10, but said it was still early to accurately gauge the outlook, given variables such as Brazilian ethanol demand.

Brazilian cane production is allocated to manufacture ethanol biofuel as well as sugar depending on relative demand and prices. Brazil is the world's top sugar producer.

David Sadler, a senior soft commodities trader, said that the market was due for a correction as physical buying was subdued after the rally to a near three-year high of 16.03 cents a lb earlier this week.

"If we close below 15 cents per lb, we might see some fund selling," he said.

Benchmark ICE July raw sugar futures edged up to 15.52 cents per lb in the late morning from 15.48 cents at the time the report was published.

They later slid briefly below 15 cents, and stood at 15.05 cents per lb, down 0.42 cent, at 1644 GMT, pressured by the stronger dollar and weaker oil prices.

Raw sugar futures have surged by more than 30 per cent so far this year, largely due to the increased physical demand from India, the world's top consumer of the sweetener, which has swung to net importer from exporter.

London August white sugar futures closed down $8.30 to $429.00 per tonne in modest turnover of 4,019 lots.

Arabica coffee futures reversed early losses to trade higher on concern about supplies of high-quality arabica beans in Colombia, dealers said.

Snowdon said, however, the crop in top producer Brazil looks set to be slightly larger than had been previously anticipated.

"As you see the Brazilian harvest come on line later in the summer, that will weigh on ICE coffee prices," he said.

July arabica futures were up 0.8 cent at $1.2880 per lb.

Robusta futures in London were also firmer with July finishing up $5 at $1,510 per tonne.

source: news.alibaba

Read more...

Sugar prices are moving up on higher demand

Sugar cane price could rise to Bt1,000 per tonne in the 2008/2009 harvest season, which should guarantee the unchanged supply of cane from last year's level, said Prasert Tapaneeyangkul, secretary general of the Office of Cane and Sugar Board.

"This is the golden year for the sugar cane and sugar industry. From total cane production of 66.5 million tonnes in the harvest season, we can produce 7.1 million tonnes of sugar. But due to lower outputs globally, many countries have demanded higher sugar imports like India, Europe, Pakistan and China, which should boost the sugar prices," he said.

The cane output is below the target of 71.80 million tonnes.

Involving 190,000 farming families and over 1 million jobs, the sugar industry earns Bt80 billion a year, including export revenue. Last year, Thailand's sugar exports totalled Bt47 billion.

To promote the industry, the government has worked with farmers and 47 sugar mills in growing high-yield and high-sugar-content cane. Over Bt10 billion of loans has been allocated to farmers, while the government is considering the proposed Bt1 billion scheme for sugar cane-harvesting truck purchases.

"Sugar prices have risen despite economic slowdown, as many countries like India, China and Europe suffer from natural disasters which led to lower cane production. The primary cane price for the 2009/2010 harvest year should stay above Bt800 per tonne," said Thai Sugar Miller Ltd's chief executive officer Vibul Panitvong.

The previous harvest year's primary price was Bt850 per tonne.

He also believed that due to the high prices, farmers would grow more sugar canes in the next harvest season.

source:nationmultimedia

Read more...

Coca-Cola is releasing a new recyclable plastic bottle made partly of plant materials, including molasses and sugar cane.

The bottle will be made of up to 30 percent plant materials, as well as petroleum-based materials, so don't get any ideas about nibbling on the bottle after you quench your thirst.

The new bottles will be piloted in North America with Dasani water "and sparkling brands" in select markets later this year, and with Coca-Cola's vitaminwater brand in 2010, according to a Coca-Cola press release posted to BusinessWire.

Coca-Cola got into a little hot water with the Food and Drug Administration last year over health claims on Diet Coke Plus. And the Center for Science in the Public Interest sued Coca-Cola earlier this year over "deceptive" health claims in vitaminwater. Coca-Cola released a statement calling the lawsuit "ridiculous and ludicrous."

In other health-related soda news, some researchers have said that the acid in sodas can erode the enamel from your teeth, but a beverage industry representative disagreed.

source: livescience

Read more...