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 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.