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WILLIAMS  SA

September 2010 Brazilian Shipments

 

According Williams SA, Brazil shipped a total of 2,677,653 tonnes of sugar (2.435 million raws/242,486 whites) in September from both the center-south and the north-east. This compares with 2,849,707 tonnes shipped in August and 2,183,263 million tonnes shipped in September 2009. 

 

Center-South

Center-south shipments in the month totaled 2,633,196 tonnes, of which 2.422 million tonnes was raw sugar and 211,187 tonnes was white sugar.  The compares with 2,836,707 tonnes shipped last month (2.592 million tonnes of raws and 244,833 tonnes of whites) and 2,123,663 tonnes in September 2009 (1.989 million tonnes of raws and 134,302 tonnes of whites).

 

The major destinations for the raw sugar exports were as follows:

·         India: 214,554 tonnes (1,125,079 tonnes this crop [3.873 million last yr)

·         Algeria: 229,596 tonnes (723,049 tonnes this crop [612,222 tonnes last yr.])

·         UAE: 323,688 tonnes (1,088,351 tonnes this crop [1.245 million last yr])

·         Bangladesh: 222,800 tonnes (450,352 tonnes this crop [971,059 tonnes last yr])

·         Egypt: 189,050 tonnes (619,654 tonnes this crop [782,157 tonnes last yr])

·         Black Sea: 213,300 tonnes (1,093,285 tonnes this crop [2.953 million tonnes last yr]

 

It should be noted that there were four destinations, namely Canada, Iran, Syria and Nigeria that were all due to receive 100,000 tonnes or more. Once again the toll refiners continue to be good buyers as they are most probably still in the process of filling high prices sales, although these may have slowed recently as the white demand has decreased. The Black Sea continues to be a sizable receiver of Brazilian raw sugar despite the Russians withdrawing as a buyer following their large purchases for May arrival, when the import duty was only $50 per tonne. India continues to be a sizable receiver despite yesterday’s confirmation that they sold raw sugar to the U.A.E - assume these imports are for toll refining. There were only 44,950 tonnes destined to China, bringing their total from this crop to 1.068 million tonnes, and with only 49,500 tonnes in the line-up it looks as though their current program of buying Brazilian sugar is drawing towards a close. An interesting destination was Taiwan, 34,000 tonnes of raws in the month – due to the high cost of Far Eastern sugar and the lack availability elsewhere. Taiwan, a seemingly small destination, but perhaps a good representation of the world’s current psyche.   

The center-south has now shipped a total of 12,163,861 tonnes in the May – September period (11.358 million tonnes raw/805,946 tonnes whites) compared with 9,375,357 tonnes in the same period in 2009 (8.585 million tonnes raws/790,170 tonnes whites). This means that total exports are now 2,788,504 tonnes ahead of last year. Raw exports 2,772,728 tonnes higher than last year and white exports now 15,776 tonnes ahead. These increased sugar exports can be compared with the latest Unica figures which note that sugar production is 6.07 million tonnes higher than last year to September 15th.   The general estimates are that sugar exports from Brazil will be about three to four  million tonnes higher from this crop as the extra production is needed to replace sugar stocks especially with the surging domestic sugar price which is the best return to the Brazilian millers (domestic prices have rallied 4.5% in the past week alone). White exports are ahead of last year for the first time during this crop, despite purchases made when premiums were near record levels.

 

North-East

In the first month of the new crop the north-east shipped a total 44,458 tonnes (13,158 tonnes raws/31,300 tonnes whites. This compares with 13,000 tonnes of whites shipped last month and 59,600 tonnes shipped in September 2009 (48,600 tonnes raws/11,000 tonnes whites). The major destination of the raws this month was the USA with 10,552 tonnes as they try and complete their US import quota.

 

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