Sugar price monitoring data by Sugar.ru and news from Kazakhstan and Ukraine, Jul 12, 2018

Latest news are available in our daily reports.

RUSSIA

According to Sugar.ru price monitoring data for the period from 05.07.2018 to 11.07.2018 the US dollar rate dropped by -1.2% (on 05.07 - RUR 63.23/$, on 11.07 - RUR 62.44/$). Ruble Moscow wholesale price for sugar dropped by 1.90 RUR/kg (-6.03%), Krasnodar wholesale price dropped by 2.00 RUR/kg (-6.45%). US dollar Moscow wholesale price for sugar dropped by $0,024 /kg (-4.82%), Krasnodar wholesale price dropped by $0.026 /kg (-5.31%).

Wholesale prices for sugar kept falling throughout the past week. Formally, the reason for this decline was again Rusagro's policy, which has dropped the sales price to 27 rubles per kilo. Responding the claims, the company's representatives reply that if the rest of the participants consider such a price to be artificially low, then nothing prevents them from buying sugar at this "understated" price, in order to sell it more dearly tomorrow.

Soyuzsahar has published data on the growth of sugar beet, and they are very disappointing: the weight of sugar beet is 133 g (in 2017 - 149, in 2016 - 190 g); the weight of sugar beet tops is 166 g (in 2017 g -272, in 2016 - 282). Rough extrapolation says, we are 10% behind last year, and if we reduce the acreage by 4%, then by 14%. Yes, such a backlog is caused by late sowing of sugar beet among other reasons, it can still ripen and gain weight, but the shift in harvesting time increases the risks of collecting and preserving beet, no one has managed to cancel winter in Russia. Our estimate of the harvest so far remains at the level of 6.2 million tons of sugar, with the possibility of lower the estimate further on.

Export of sugar by rail in five days of July remains at the level of the previous two months (about 16 thousand tons per month). Transit of sugar to Central Asia and Azerbaijan by the Russian railway continues to fall, and by the beginning of the month is estimated at 40 thousand tons per month. Azerbaijan has disappeared from the transit, probably this is due to the import of a significant amount of raw sugar, and another steamer is expected in the near future.

Regions report a decrease in sugar residues, but so far this has not led to an increase in demand, perhaps at a falling market and before the new season, companies are afraid to buy sugar for future use, preferring to operate volumes required to meet short term demand only.

UKRAINE

In June 2018 Ukraine exported 67,600 tons of sugar, which is 25% more than in the previous month, Ukrtsukor reports. The main supplies of sugar in June were carried out in Uzbekistan - 51% and Libya - 35%. Also, insignificant volumes were sent to Azerbaijan - 5%, Armenia and Georgia - 3% each. In ten months of current marketing year, Ukrainian producers exported 501.0 thousand tons of sugar, which is 32% less than in the same period last year.

KAZAKHSTAN

Aksu sugar factory plans to accept up to 150 thousand tons of sugar beet in the season 2018/19.

Sugar.Ru 

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