The U.S. sugar beet crop is progressing nicely and with normal weather this season we could see record production. Domestic beet processors are still struggling to get sugar sold for the balance of 2016 and prices remain under pressure.
The United Nations’ food-price index jumped 4.2 percent in June, the most since July 2012, the group’s Food &
Agriculture Organization said on its website. The gauge, which monitors 73 different food prices, advanced for a fifth month in the longest run since 2011. Food costs are now the highest in almost a year, partly after raw-sugar futures rallied 16 percent last month. Speculators have boosted bullish bets on the sweetener to a record amid forecasts for a second year of supply shortages. Brazil is the world’s largest sugarcane producer, accounting for 39 percent of world production. Sugarcane is nearly the exclusive ethanol feedstock in Brazil. Production of both sugar and ethanol in Brazil has expanded rapidly since the mid-1990s. Sugarcane production reached 640 million tons in 2014, up 188 percent since 1991, while over the same time, the share used for ethanol production declined from 72 percent in 1991 to a low of just over 49 percent in 2003 and a 2014 level of 55 percent.