The molasses market continues to evolve
The molasses market continues to be firm but with good global supply. Global ocean freight remains the key driver with shipping costs now more than double what they were 12 months ago and no imminent sign of easing. High oil prices continue to create demand for fuel ethanol which in turn drives demand for molasses in countries of origin. High global energy prices are also driving demand for molasses into biogas
production where producers can pay much higher levels for feed stocks than we have seen historically. On top of this, the Ukraine situation has resulted in Russian and Belarussian beet molasses being blacklisted by many counties. Together this supply represents a significant tonnage that needs to be replaced. This has created demand for other origins and disrupted normal supply dynamics leading to increased prices.
Liquid co-products also remain firm due to demand from biogas and as fertiliser. Other additives used in our liquid feeds such urea, soya bean oil, vitamins and minerals are also firm and unlikely to ease in the short term.