Molasses

Molasses, also called treacle, is a dark brown viscous liquid obtained as a by-product in the processing of both beet and cane sugar. Molasses is the syrup remaining from the crystallization of sugar cane and sugar beet juice.

Sugar cane molasses accounts for approximately 80% of molasses production. Beet molasses is a product of the sugar beet industry, and accounts for approximately 20% of molasses production. In sugar refining, blackstrap molasses is obtained after the last of three boiling or extraction processes that sugar cane goes through to produce molasses. The third and final separation is called blackstrap molasses, which is a thick dark liquid syrup. Blackstrap molasses is used worldwide mostly as a feed supplement for livestock. Other uses for molasses include cooking or baking and the production of alcohol.

Prices – The price of molasses fell in 2003 due to the plunge in sugar prices during the year, which closed the year near 20-year lows. Molasses and sugar prices show a fairly high correlation since molasses is a by-product of sugar production. In fact, statistical analysis of CRB data shows a correlation factor of 0.64 between molasses and sugar prices over the past 3 decades. The wholesale price of blackstrap molasses (cane) at Orleans fell to $58.07 per ton in 2003 from $64.67 in 2002 and the 7-year high of 67.95 posted in 2001. The 2003 price of $58.07 per ton translates into a per gallon price of 34 cents per gallon (dollars per ton divided by 171 equals cents per gallon).

Supply – The production of molasses is highly correlated with the production of sugar, and by extension sugarcane and sugar beets. The largest producers of sugarcane are India, Brazil, China, and Thailand. US production of sugarcane amounts to less than 3% of world production. However, when it comes to using sugar beets to produce sugar, the US is in the top tier of producers along with Germany and France.