Throughout Q2 of 2024, the US sugar market has been quiet compared to activity a year ago. Buyers have become more secure in their position and are hesitant to commit to large volumes after overbooking in 2023. This week, spot and contract prices for both beet and cane sugar were steady to slightly higher as the summer months approached. This price shift is typical given market seasonality, and demand for products like ice cream and sweet beverages begins to increase. The Mintec Benchmark Price for beet sugar spot FOB Midwest was most recently assessed at $0.57/lb, a two-cent increase w-o-w, while cane sugar spot FOB Southeast was assessed at $0.61/lb, a one-cent increase from last week.
Meanwhile, contract deliveries remain steady and in line with expectations. Sales for next year continue to advance, albeit at a slow pace. Some buyers are holding off on completing contracting for 2025 amid price weakness. Processors continue to assess positions for next year as beet planting continues.
Sugar beet planting is running ahead of the five-year average. According to the USDA, aggregate planting is up 36% y-o-y. However, there are some concerns regarding drought in key cane-growing regions. The USDA reported that 42% of US cane production was in areas of moderate drought, mostly in Florida. That is an increase of 39% w-o-w and 6% from a year ago.
The high fructose corn syrup market remains quiet as well. According to market sources, there have been few inquiries for 2025 pricing. Spot prices remain flat, with the Mintec Benchmark Price for high fructose corn syrup 42% FOB Midwest most recently assessed at $0.33/lb, unchanged from a week ago. Dextrose prices have seen slight increases as domestic production is limited.
