The European Union ranks as the world’s third largest producer and the second biggest consumer of sugar. Farmers grow sugar beet, a crop suited to the region’s temperate climate and which has high sucrose content.
For almost a decade, the EU market has operated within a framework of production quotas, minimum beet prices, export caps and import rules. But the season starting October 1, 2017, will herald a new phase for the market. Production quotas and export caps will be lifted, and beet growers will no longer be guaranteed a minimum crop price. The EU is expected to once again influence and be impacted by supply and demand dynamics on the global sugar markets.
Platts Western Europe Delivered assessment considers inland deliveries of white sugar to France, Germany, Belgium and the Netherlands -- some of the EU’s biggest production centers. The grade reflected is 45 ICUMSA meeting the EC No. 2 quality. It considers spot trades for deliveries within two months from the day of the assessment.
Platts publishes a parallel Mediterranean sugar price assessment which looks at deliveries to two of the EU’s biggest importers, Spain and Italy, as well as a range of other assessments for quota and out-of-quota sugar basis ex-work, containers, and imported raw sugar.
The Platts Sugar Price Assessments are available in these services.
Platts Western Europe Delivered sugar price assessment is based on robust and transparent market data that includes, but is not limited, to firm bids and offers, expressions of interest to trade and confirmed trades reported across the trading day.
The price of Western Europe Delivered sugar is assessed weekly in Euros per metric ton and reflects the tradable and repeatable spot market value at 1630 London time.
Platts gathers price data from a wide segment of the market, including sugar producers, traders, brokers, and consumers.
Data collected by Platts is published in full on our real time service Platts Agriculture Alert and is summarized in our daily publication Kingsman Daily Sugar Report, and EU Weekly and EU Monthly Reports.
Platts publishes seven unique price assessments for European sugar. Six are for white sugar, the main type of sugar produced in Europe, and one for raw sugar, which is imported in smaller quantities for industrial purposes.
Platts acquired Kingsman in October 2012 to help boost their product offerings in the Agriculture markets, and Kingsman have been publishing premiums for the European sugar market for more than 20 years.
Some of the earliest daily reports written by Kingsman’s eponymous founder, Jonathan Kingsman, contained bids, offers and trades heard in the marketplace.
The portfolio of prices has since then expanded to provide a range of assessments on an outright price in euros, and also on both a premium and flat price basis to the ICE White Sugar Futures (London #5) contract in dollars per metric tons.
Platts constantly reviews the parameters of its assessments, and will be closely following the changing dynamics around the liberalization of the EU market in 2017 to ensure the methodology best reflects the new regime.
We continuously work with key industry stakeholders to ensure that our price assessments evolve in step with changing market conditions. Platts regularly holds methodology forums, webinars and one-to-one meetings to exchange views on the future of sugar both in this region and globally.
The Platts Western Europe sugar price assessment, alongside other global sugar prices, is available in the following Platts services.
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