“The true purpose for the worth rebound has to do with ethanol and rising gas costs”

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“The true purpose for the worth rebound has to do with ethanol and rising gas costs”

HASn spring, the farmers rolled the cube on a inexperienced carpet. Beets, sunflowers, corn, barley… Place your bets! Guess your seeds at finest. Every year, the wheel of agricultural fortune turns and brings its share of winners and losers. Because the crops come out of the bottom, the Ministry of Agriculture launched its probe to estimate the stakes. In accordance with knowledge launched Wednesday, June 8, the sunflower appears to have turned heads. The gorgeous spherical flower ought to cowl an space of ​​800,000 hectares, up 14%. A yellow carpet of unprecedented measurement.

The scarcity of sunflower oil on the cabinets, sparked by panic shopping for by customers fearful a few provide disruption following the Russian invasion of Ukraine, producer of half the world’s volumes, inflaming costs, performed . As well as, its sobriety has change into a key asset when the worth of fertilizers explodes. Spring barley can be gaining floor space. Conversely, the sugar beet fields proceed to soften. They fell under the 400,000 hectare mark, accumulating an 11% drop over the past 5 years.

Learn additionally: Sunflower oil could be changed in fries, crisps or biscuits, with out modifying the packaging: what adjustments for you?

This attrition may proceed, in line with Gérard Clay, president of the Tereos cooperative, the world’s second largest sugar group, which expects an additional decline of 10% by 2024. Planters don’t make sufficient wheat with sugar, say -they. It’s true that barley, rapeseed, sunflower are buying and selling at gold costs. Nonetheless, because the disaster, in 2019, when the remuneration for beets sank to 22.30 euros per ton, the worth of the basis has climbed the slope to exceed 28 euros per ton in 2021. It may even be negotiated at extra of 30 euros through the subsequent harvest.

Candy juice

Monetary traders have, in actual fact, over the previous two years, regained an urge for food for sugar, even when it doesn’t crystallize consideration. In New York, the pound of uncooked sugar is buying and selling at almost 19 cents, when it was near 10 cents within the midst of a despair. “This market is just not on the coronary heart of the information, as a result of it doesn’t rely on Russia and Ukraine, even when these two nations are main producers of beet sugar for their very own wants”says François Thaury, director of the sugar market at Agritel, who provides: “The true purpose for the worth rebound has to do with ethanol and rising gas costs. » Black gold and white powder…

Learn additionally Article reserved for our subscribers The political energy of sugar, between delights and domination

All eyes flip to Brazil. The world’s main producer and exporter, the place the cane harvest started in April, can press the sugar or ethanol button at any time to profit from the candy juice. “In 2021, the ratio was 45% sugar and 55% ethanol. Nonetheless, one level extra ethanol corresponds to 700,000 tonnes much less sugar., explains Mr. Thaury. Uncertainty concerning the weight of sugar within the scale creates stress. The identical applies when nations restrict their exports. In India, orders have been given to cap exports, however at a report stage of 10 million tonnes. Algeria has additionally closed the airlock. When sugar shares not circulation…

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