‘Not the 2020 we anticipated’
2020 was set to continue on the road to recovery for sugar prices. However, the coronavirus pandemic has resulted in changes to supply and demand dynamics across various agricultural commodities. How has the market evolved in Europe over the year, is production still set to increase, and how has consumer stockpiling and the switch to home life impacted demand? These were just some of the questions addressed in this year’s edition of the European Sugar Conference this September 9th. Agiboo, main sponsor of the event, had several contributions in Wednesday’s packed schedule.
Coming together – virtually
Nothing has shaken up the commodity markets like the covid-19 outbreak in a very long time. Falling food and fuel demand from the pandemic has led to weakening prices across the complex, as well as logistical complications. As the pandemic continues, the impact on consumption and overall uncertainty ahead is a threat to European players.
The conference gave us all an opportunity to step back and assess the new outlook for the EU sugar market. How has demand evolved, how is the general uncertainty impacting the price and what will drive the sugar price going forwards. The short answer for the latter, again, is covid-19. The sugar market had rallied from 10cts to 15cts/lb in 5 months as expectations of a decent sized deficit for the 2019/20 season were growing. That was before the global pandemic. Consumption growth quickly turned negative due to lockdowns and demand destruction. The foremost impact then has been the disappearance of deficits.
Managing risk in the current climate
The need for a robust risk management process has clearly been showcased through the course of the year. We heard from the trenches how companies have been dealing with all that profound uncertainty and shared our views on risk management as well, as our CEO was one of the speakers throughout the day’s program.
An important if not vital instrument for commodity traders in today’s industry is our own CTRM software. The closing session of this year’s conference returned the spotlight on Agiboo when we came full circle and were given the opportunity to showcase what our flagship product has to offer. Jan van den Brom turned to an online audience for a comprehensive presentation – or rather hands-on demonstration – of our leading CTRM software solution, Agiblocks, in the final hour of this year’s conference.
Agiblocks CTRM is the first Commodity Trade and Risk Management software solution that simplifies the daily practices of commodity trade professionals. It has been developed with the single goal of making your fixed routine of commodity trading and risk management more efficient. Its clean user interface is simple with fast access to key functions. For every task, from creating a contract to evaluating your risk, all required information is readily available. It is as powerful on smartphones and tablet computers as it is on the desktop.
Experience our CTRM software solution for free and get a front-row seat to all the benefits Agiblocks has to offer with our free demo. The full range of Agiblocks functionality is available within the demo environment for your browsing leisure. Familiarize yourself with the tools and features of our powerful and agile software solution and find out how you can make the daily practices of commodity trade and risk management more efficient.
Fill out the form on agiboo.com/demo and we will get back to you.