During the reported week, wholesale sugar prices in the Eastern market remained unchanged in all major cities. Marginal price fluctuations were observed for VHP sugar in Mogadishu, while low-quality white sugar saw a significant dip of USD 64 per ton due to increased imports. In the Southern market, some price drops were recorded, primarily due to fluctuations in the Rand value.
In Kenya, the EAC market showed the lowest import parities for VHP sugar despite the closure of all sugar sources, including the EAC market. The Indian market did not indicate any sugar contract offers.
Kenya continues to register no port activities for imported sugar due to the closure of the import window. In contrast, Somalia remains active with vessels from various world market sources bringing in both VHP and refined sugar.
In Egypt, Nile Sugar Company has signed an investment contract to develop 14,000 Feddans in the Western Minya Extension area for large-scale sugar beet cultivation, aligning with Egypt's Vision 2030 goals. This project aims to optimize water use, reduce imports, and achieve self-sufficiency in sugar production, further supporting Egypt's economy.
Overall, the stability in sugar prices across the Eastern market reflects the region's optimal or near-optimal local production and minimal currency fluctuations. The Kenyan market remains balanced in terms of sugar stock movement, ensuring stable prices in major cities. Maintaining this balance is crucial for continued price stability in the region.
Source: kulea.com