Weekly Market Outlook 10th - 16th June 2024

Weekly Market Outlook 10th - 16th June 2024

Sugar prices in Kenya showed mixed trends, with Mombasa experiencing an increase of USD 15.25 per ton, while Nairobi saw a decrease of USD 14.74 per ton for brown sugar. The rest of the East African Community (EAC) region saw generally stable prices, except for a slight drop in Kampala, Uganda. The price drop in Nairobi is attributed to the influx of sugar from Uganda, which has depressed local warehouse prices.

There were no offers for VHP sugar from the COMESA Free Trade Area for both Mombasa and Nairobi markets, and the EAC market remains closed with negative import parities. In contrast, the World Market presented generally positive import parities for the week, with Mombasa receiving the most favorable offers.

The vessel tracking module reported no sugar shipments from the World Market to Kenyan ports for another consecutive week.

Overall, the EAC region has experienced relative stability in sugar prices, likely due to improved local production and existing import stocks, compared to the more fluctuating Southern markets. Favorable climate conditions have boosted sugar production in the region. While the World Market offers potential positive import parities for VHP sugar, the EAC market faces negative parity due to higher regional prices and currency fluctuations.

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