Global sugar market - the analysis of factors influencing supply and demand

Abstract

RUMÁNKOVÁ LENKA, SMUTKA LUBOŠ: Global sugar market -the analysis of factors infl uencing supply and demand. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2013, LXI, No. 2, pp. 463-471 This article deals with an analysis of the world sugar market, and specifi cally focuses on the supply and demand of refi ned sugar and their main determinants. The article fi rst identifi es the main determinants of the world supply of and demand for sugar, and further, their eff ect on such variables is quantifi ed. Further, the component correlations on the selected market are analyzed. This consists of the identifi cation of the factors aff ecting the production of refi ned sugar, as one of the main elements of the supply of sugar, as well as an analysis of the world price of sugar, as one of the signifi cant factors aff ecting the world sugar market. The said correlations are quantifi ed with the utilization of regression analysis on the basis of time series of the individual variables within the years 1980-2010. On the basis of the conducted analysis, the main determinants of the sugar supply on the world market within the analyzed period, for which an eff ect has been established both from an economic viewpoint, as well as from a statistical viewpoint, can be considered to be sugar reserves, its price and the acreage of sugarcane. The main determinant of the demand for sugar is, according to the conducted analysis, the global GDP on a new value level, as well as converted to one inhabitant. Further, the analysis also established the eff ect of the price of sugar and its reserves on the world production of refi ned sugar, and, last but not least, also the long-term tendency in the development of the world price of sugar. The analysis has proven signifi cant infl uence of refi ned sugar supply, reserves of refi ned sugar, its price and area of sugar cane on sugar supply. Then, the analysis detected GDP as the main determinant of the sugar demand and the long memory in sugar prices. Finally, the infl uence of delayed price, reserves and delayed reserves on production has been proven.

Prediction of global sugar prices after abolition of EU sugar quotas

“…Although they did not predict a high price increase in 2016, they estimated the general tendency of sugar prices around the world at the average level of 15 cents per pound well, which was confirmed in the research of the authors of this article. A similar conclusion was presented by the authors of Rumánková and Smutka (2013), who stated that the main determinants of sugar prices on world exchanges are primarily the volume of sugar production and the related surplus of inventories, as well as sugar prices in previous periods. Their research did not provide any information on the impact of government support or administrative regulations on the level and fluctuation of sugar prices in the world.…”

Sugar Prices vs. Financial Market Uncertainty in the Time of Crisis: Does COVID-19 Induce Structural Changes in the Relationship?

“…When stocks are high, prices tend to be low. Among stocks, supply is further dependent on sugar price in the previous period and acreage of sugarcane [71]. The sugar price peak of 2006, the largest increase since 1997, was mainly caused by the global oil crisis and the use of alternative fuels as bioethanol and fall in the U.S. dollar (USD) exchange rate.…”

Problem confrontation of sugarcane farmers in Natore district of Bangladesh

“…Sugarcane is used as a raw material for making sugar, biofuels, bioproducts, and plays a vital role in daily life of any nation including nutritional and economic sustenance (Ambetsa et al, 2020). It contributes 86% to sugar production as a vital source of white sugar globally (Rumankova and Smutka, 2013;OECD-FAO, 2019). Sugarcane is the important cash-cum industrial crop and mainly used for producing white sugar in Bangladesh (Rahman et al, 2016;Tabriz et al, 2021).…”