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RUSSIA
Enterprises of Karachay-Cherkessia plan to increase the sugar beet acreage 1.8 times in 2017, up to 7 thousand hectares. It is aimed to resolve of the operation issues of the Erken-Shakar sugar factory, according to the republican Ministry of Agriculture.
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LLC "Giray-sugar" has procured the property complex of bankrupt enterprises of JSC "Kuban Giray Sugar" including a sugar factory at the auction. The initial lot price decreased from RUR 2.1 billion to RUR 707 million, then to RUR 706.5 million. Sugar factory with DC 3.8 tons of raws was a part of holding "Euroservice" and had large debts to the Agricultural Bank. Back in 2008 the enterprise was declared bankrupt.
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According to the data of price monitoring by Sugar.ru for the period December 22-29, 2016, the US dollar exchange rate dropped by 0.7% (on December 22 the rate was US$1=RUR 61.11; on December 22 the rate was US$1=RUR 60.67). Ruble Moscow wholesale price of sugar fell by 0.25 RUR/kg (-0.71%), Krasnodar wholesale price decreased by 0.10 RUR/kg (-0.30%). US dollar wholesale price of sugar has not changed in Moscow, remaining at the level of US$ 0.578/kg, Krasnodar the wholesale price increased by US$ 0.002/kg (+ 0.36%). Most companies actually suspended sugar trade due to the New Year holidays.
Summing up the preliminary results of the year… Most important fact is that it’s the first year in the history of modern Russia, when the production of beet sugar exceeded own domestic consumption, which has brought down the price of sugar. Our last estimate of production volume in Russia was 5.8 million tons by the end of the season and it may be too low. Additionally this year Belarus will receive significantly more sugar, as in the first place, country has purchased and brought in 257 000 tons of raw sugar against in 2016 compared to 166 000 tons in 2015 season, and, secondly, the production of beet sugar reached 550.1 thousand tons by mid-December (cf. 403,6 thousand tons total in 2015). Kazakhstan, according to official data for the first 11 months of 2016, has exceeded last year volume and has produced 418,9 thousand tons of sugar and molasses (in 2015 - 200,7 thousand tons). Ukraine (by December 28) has produced already 2.0 million tons of sugar in the season, while total production a season earlier was 1.43 million tons.
Exports this year, given the fall in prices, are significantly higher than last year. Russia exported to the neighboring countries 84 000 tons by rail only by December 28, while total exports last year were only 6.8 thousand tons.
Well, the main intrigue of the Russian sugar market is silence from "Prodimex". The largest sugar company, whose production according to some estimates could reach 1.5 mln MT, is off the open market. We can only guess possible scenarios in the sugar market, when Prodimex volumes would emerge there.
UKRAINE
Kharkov region of Ukraine has completed the sugar production season, according to the regional administration. The regional plants have processed 1,210 thousand tons of sugar beet and have produced 160 thousand tons of sugar – is the highest figure for the last decade. The leader of 2016 production season is JV "Bely kolodets" (43 thousand tons).
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In 2016 "Astarta-Kyiv" is drafting to export about 180 thousand tons of sugar, according to Victor Ivanchyk, company CEO. According to the officer, it is projected to export about 400 thousand tons of sugar from Ukraine in 2016.
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