Price monitoring data by and news from CIS, Aug 17, 2017

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As of August 16, 2017, sugar beet was harvested from an area of 30.3 thousand hectares or 2.5% of the sown area (in 2016 – 25.5 thousand hectares), according to the Agriculture Ministry.

Sugar beet harvesting campaign started in the Kursk region.

In the Altai region started harvest earlier than usual, which is caused by a large amount of sugar beets that must be processed at the «Cheremnovsky sugar plant».

In the Voronezh region, four sugar plants plans to launch on August 20 – «Elan-Kolenovsky», «Kalacheevsky», «Liskinsky» and «Olkhovatsky» plants, the local press reports.


According to price monitoring by for the period from 10.08.2017 to 17.08.2017, the US dollar rate decreased by 0.5% (on August 10 - 59.96 RUR/USD, on August 17 - 59.65 RUR/USD). The ruble Moscow wholesale price for sugar decreased by 1.45 RUR/kg (-4.35%), the Krasnodar wholesale price went down by 1.30 RUR/kg (-4.19%). US dollar wholesale Moscow sugar price decreased by $0.021/kg (-3.78%), wholesale Krasnodar price fell by $0.019/kg (-3.68%).

Last Thursday eventually turned out to be not a reversal, but a stop, prices continued to fall. Demand continues to remain low, the experienced regional traders expecting further decline and do not hurry up with purchases. Every day are received reports from the "sugar fronts" about increasing of sugar production․ From the latest – the «Zainsky sugar plant» plans to produce 200 thousand tons of white sugar (in 2016 - 136 thousand tons), «Dobrinskiy sugar plant» plans – 255 thousand tons (in 2016 – 215,5 thousand tons). If there wouldn't be problems with harvest, then the current year will beat last year’s sugar production record.

Exports of white sugar by rail continue to remain relatively low. The 6.4 thousand tons were shipped for 17 days of August, compared with figures in March-April, when exports were about 50 thousand tons per month. However, lower prices may lead to exports increase. At the same time, world sugar prices have fallen. So, according to the FCS of Ukraine, the average price of sugar exports for the first 7 months of this year was USD 490/MT, but most of the deliveries were made at the beginning of the year, when world sugar prices were much higher, about USD 480-520/MT. Today, sugar at the LIffe exchange is at USD 361/ton, which means, you will have to compete in the world market with a price of 21.4 RUR/kg without VAT. Nevertheless, traditional markets remains for the supply of Russian sugar. From the countries of the EAEU - Kazakhstan, Kyrgyzstan, access to which is facilitated by high customs duties for sugar from outside the Customs Union, and convenient logistics.

Assessing these risks, large Russian companies are trying to sell sugar today, even at a low price, but still higher than the cost price. Leader, as in the past year, is the company Rusagro, which causes complaints of the other market participants. However, on charges of artificially lowering the price, Rusagro may notice that nothing prevents critics from buying this "artificially cheap" sugar today in order to sell it tomorrow, when the price will be expensive.


According to the National Statistical Committee, sugar production in the country has amounted to 100 tons in July 2017 (in June 2016 was 35 thousand tons).


In January-July 2017, the industrial production of sugar was 146.6 thousand tons in the Republic of Belarus, which is 42.6% less than the same figure in 2016. Total production of white sugar in 2016/17 season amounted to 738.2 thousand tons. (in 2015/16 season was 684.6 thousand tons).


According to state statistics service of Ukraine, the average price for white sugar from manufacturers in Ukraine was 12846.84 UAH/MT in July 2017 (RUR 30075.86/MT at the current rate of the Central Bank of the Russian Federation). In June the average price was UAH 12755.36/MT (RUR 29861/MT).


According to the Statistics Committee, the production of sugar in the country amounted to only 38.9 tons in June 2017 (in June 2016 was 6.5 tons).



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