Sugar news from Russia and CIS countries, Sept 13, 2018

Latest news are available in our daily reports.

RUSSIA

According to Sugar.ru price monitoring data for the period from 06.09.2018 to 13.09.2018 the US dollar rate increased by 1,6% (on 06.09 - RUR 68,46/$, on 13.09 - RUR 69,57/$). Ruble Moscow wholesale price for sugar increased by 5,10 RUR/kg (+17,65%), Krasnodar wholesale price increased by 4,00 RUR/kg (+14,81%). US dollar Moscow wholesale price for sugar increased by $0,067 /kg (+15,88%), Krasnodar wholesale price increased by $0,052 /kg (+13,20%).

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The previous week featured an uninterrupted agitated growth of sugar prices, and by Thursday September 13 the values reached the level of RUR 31 per kilogram per self-pickup, and in some places – as high as RUR 33/kg, the reasons for this growth will follow. The rise in prices provokes sugar companies to again have two price tags: one is official for sugar beet producers (in the early morning all quantities were already sold with sales limit of not more than 40 tons per buyer, etc.) and one actual price, exceeding the official by 2 rubles or more.

Today all the stars have come together over the sugar market whispering loudly to raise prices.

Rossahar has revised downward the harvest in current season and, accordingly, reduced the expected production of sugar by 200 thousand tons, thus, the total production is expected to be about 6 million tons. Given the latest news from the fields, even such assessment may prove to be optimistic. However, a number of companies started harvesting beets earlier this year, as it is more profitable to start processing it with a sucrose content of 12% than to finish in December with a sugar content of 8%, hence given similar bulk harvest the production yield of sugar will be higher. In any case, most of the harvest campaign lies in front of us, so, as they say, we shall see what we shall see.

The price of sugar is growing at world exchanges. If on August 16 the cost of raw sugar at TheICE was 10.3 ct/lb, then yesterday the stock market closed at 11.67 ct/lb (+ 12%).

The Russian ruble rate falls, if in mid-August the dollar was RUR 56.4, today it is RUR 69.6 (+19%).

Kazakhstan has not imported raw sugar for a long time. Two vessels with raw sugar for Kazakhstan hang on roads in Novorossiysk since April 2018. Will Kazakhstan import raw sugar in the current season, is still unclear. The acreage under sugar beet this season is 13% less than last season.

According to the railway monitoring data by Sugar.ru, in 13 days of September 2018 Russia imported 616 tons of sugar (for comparison, in August the import was 13 thousand tons). The export of white sugar by rail amounted to 2.8 thousand tons from the beginning of September (in August – 15 thousand tons total). The transit of white sugar by the Russian rail decreased – 10.1 thousand tons in September 1 - 13 (in August – 37.5 thousand tons), half of which was to Uzbekistan.

Unexpectedly, the sugar contract at the NTB exchange (Russia) started working briskly, 4.5 thousand tons of sugar were sold in only the first three days of this week, although there were weeks without a single operation.

The leaders of sugar companies have met in Moscow on September 11, and the meeting has once again demonstrated the lack of unity in understanding the strategy.

UKRAINE

As of September 12, 2018, total 334 thousand tons of sugar beet were harvested from an area of 7 thousand hectares (3%) with an average yield of 46.7 MT/ha (in 2017 – 43.3 MT/ha), according to the Ministry of Agrarian Policy of Ukraine

KYRGYZSTAN

According to the National Statistical Committee, consumer prices for granulated sugar decreased by 4.9% in August 2018, and in the annual calculation (vs. August 2017) - by 21.6%.

KYRGYZSTAN

"SAVDOGAR" Bank acquired a stake in "Angren Shakar" LLC in July 2018. The amount of acquired shares amounted to 20% of the authorized capital, the local press reports.

Sugar.Ru

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