JAKARTA: A global sugar surplus will keep prices under pressure for the foreseeable future, although the commodity is unlikely to trade below 15 US cents per pound, an official from the International Sugar Organization (ISO) said.
Benchmark New York futures SBc1 plunged to a three-year low of 15.93 cents a pound in July on the prospect of a bumper crop in Brazil. Even though forecasters have since trimmed their predictions for the world’s top producer, it is still expected to rack up record output, and prices last stood at $16.47.
“There is bearish pressure on prices, at least until we see how this 13/14 season goes on. (But) personally, I don’t think prices will go below 15 cents,” ISO Executive Director Peter Baron said on the sidelines of an industry conference.
Other sources at the event on the Indonesian island of Bali said that low prices could prompt key producers to cut output or curb sales, slightly easing the downward price-momentum.
Patches of demand will also help rein in price losses.
Indonesia’s raw sugar imports could more than double to 5.4 million tons in 2013 from 2.5 million tons last year after heavy rains hit domestic output and due to rising consumption and population growth.
“Total imports could reach 5.4 million tons as there is a weather anomaly and there’s no increase in plantation areas,” Achmad Widjaja, secretary general of the Indonesian Sugar Association, said at the event.
And on the supply-side, Brazil’s leading forecaster Datagro is expected to lower its 2013/14 cane crush forecast for the key center-south region as well as estimates for Brazil’s sugar crop due to a July frost.
A senior industry official said a sluggish global market could encourage Brazilian growers to produce more ethanol.
“Sugar prices need to go up for Brazilians to sell sugar, otherwise Brazilians are going to sell only ethanol,” he said.
The ISO said last week it expected the sugar surplus to slide to 4.5 million tons in 2013/2014 from 10.3 million tons in 2012/2013. World sugar output is predicted to fall by 2.1 million tons year-on-year to 180.8 million tons in the season from October 2013 to September 2014, the group said in its latest quarterly report.
Sugar surplus to keep prices under pressure
Sugar surplus to keep prices under pressure
Saudi Arabia’s cultural sector is a new economic engine between Riyadh and Paris, says ambassador
RIYADH: Culture has become a fundamental pillar in bilateral relations between France and Saudi Arabia, according to the French Ambassador to the Kingdom, Patrick Maisonnave.
Maisonnave noted its connection to the entertainment and tourism sectors, which makes it a new engine for economic cooperation between Riyadh and Paris.
He told Al-Eqtisadiah during the opening ceremony of La Fabrique in the Jax district of Diriyah that cultural cooperation with Saudi Arabia is an important element for its attractiveness in the coming decades.
La Fabrique is a space dedicated to artistic creativity and cultural exchange, launched as part of a partnership between the Riyadh Art program and the French Institute in Riyadh.
Running from Jan. 22 until Feb 14, the initiative will provide an open workspace that allows artists to develop and work on their ideas within a collaborative framework.
Launching La Fabrique as a space dedicated to artistic creativity
The ambassador highlighted that the transformation journey in the Kingdom under Vision 2030 has contributed to the emergence of a new generation of young artists and creators, alongside a growing desire in Saudi society to connect with culture and to embrace what is happening globally.
He affirmed that the relationship between the two countries is “profound, even cultural par excellence,” with interest from the Saudi side in French culture, matched by increasing interest from the French public and cultural institutions unfolding in the Kingdom.
Latest estimates indicate that the culture-based economy represents about 2.3 percent of France’s gross domestic product, equivalent to more than 90 billion euros ($106.4 billion) in annual revenues, according to government data. The sector directly employs more than 600,000 people, making it one of the largest job-creating sectors in the fields of creativity, publishing, cinema, and visual arts.
Saudi Arabia benefiting from French experience in the cultural field
Maisonnave explained that France possesses established cultural institutions, while Saudi Arabia is building a strong cultural sector, which opens the door for cooperation opportunities.
This comes as an extension of the signing of 10 major cultural agreements a year ago between French and Saudi institutions, aiming to enhance cooperation and transfer French expertise and knowledge to contribute to the development of the cultural system in the Kingdom.
He added that experiences like La Fabrique provide an opportunity to meet the new generation of Saudi creators, who have expressed interest in connecting with French institutions and artists in Paris and France.
La Fabrique encompasses a space for multiple contemporary artistic practices, including performance arts, digital and interactive arts, photography, music, and cinema, while providing the public with an opportunity to witness the stages of producing artistic works and interact with the creative process.
