What is Western Europe Sugar Delivered?
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 by S&P Global Commodity Insights 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.
S&P Global 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.