Europe is expecting an excellent sugar beet crop this year, based on beet test results so far and demand for export licences, merchant Czarnikow said.
"Though it is still days, it appears as though the EU will produce a good crop this year," London-based Czarnikow said in its latest review, without giving figures.
By September 8 a total of 413,590 tonnes of licences had been awarded at the AEU's routine series of export tenders, more than twice the volume seen at this point last year, Czarnikow said.
"The strong demand for export licences and recent beat test results suggest that Europe will once again produce an excellent crop," it said.
"Though planted area was reduced in some of the major producing countries, favourable growing conditions appear likely to result in this year's crop pushing the boundaries forward once again."
Beat sugar production has been rising across the EU despite the reduction in planted area, Czarnikow said.
"This does bode well for the future of the EU sugar industry as it suggests that production costs can be brought down if sugar yield per hectare can be increased," it said.
"Certainly, beet test results across Europe seem, once again, to be pointing towards both high beet weight and sugar content which will give strong results on a sugar per hectare basis."
While a bout of bad weather could change the outlook, for the moment yields appeared to be strengthening, Czarnikow said.
"This is particularly important in the leading producing countries where a decrease in area had been expected to result in lower production," the merchant added.
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