Sugar price monitoring data by Sugar.ru and news from Belarus and Ukaraine, Sept 27, 2018

Latest news are available in our daily reports.

RUSSIA

Consumer sugar prices increased by 0.4% from September 18 to September 24, in Russia, since the beginning of the year (vs. the end of December 2017) - by 13.8%, according to Rosstat.

According to sugar.ru price monitoring data for the period from 20.09.2018 to 27.09.2018 the US dollar rate dropped by 1,9% (on 20.09 - RUR 67,01/$, on 27.09 - RUR 65,76/$). Ruble Moscow wholesale price for sugar increased by 4,00 RUR/kg (+11,43%), Krasnodar wholesale price increased by 5,00 RUR/kg (+15,15%). US dollar Moscow wholesale price for sugar increased by $0,071 /kg (+13,60%), Krasnodar wholesale price increased by $0,086 /kg (+17,48%).

The price of sugar, which has been growing for almost 20 days running, has stopped and seems to be reversing the trend. There is no joint strategy of behavior among large companies, so if Prodimex raised the price every day, then Rusagro, on the contrary, made a couple of unsuccessful attempts to stop the growth, and Pokrovsky and “Agrocomplex Tkachev” just did not sell sugar. Feeling that prices are unlikely to hold at today's high level, companies are trying to sell sugar, albeit slightly cheaper than the market. The logical justification here is simple, it is better to sell now and get a possible bonus from a small price rally than not to sell and risk falling prices by 4-5 rubles per kilo. Prices in the regional retail chain are still significantly behind the wholesale prices that have grown, so, in large chain stores, there is still sugar at a price of 28-29 rubles per kilo.

The high price of sugar in September, when the bulk of sugar beets are contracted, is unprofitable for companies, it is not known at what price sugar made of this beet will be sold. An additional disadvantage of the high purchase price is the stimulation of larger sugar beet acreage in spring, and the receipt of another year with a high surplus of white sugar and, accordingly, low prices for it. Do not forget that in the next season, when the station for desalting molasses will be launched by Rusagro, an additional 80,000 tons of sugar will be delivered to the market.

An additional impetus to the price decrease is the strengthening ruble and falling prices for raw sugar in the world market: for the first time since 2008, the price of contract # 11 at the Exchange TheICE dropped below 10 ct/lb. The good news is that one of the two steamships with raw sugar destined for Kazakhstan, and awaiting discharge in the port of Novorossiysk since the spring, has finally left to Batumi and raw sugar will go to Azerbaijan.

UKRAINE

As of September 25, 29 sugar refineries are operating in the country; 1385.2 thousand tons of beet processed and 163.3 thousand tons of sugar produced, Ukrtsukor reports. As of September 26, 44.0 thousand hectares of sugar beet were harvested in Ukraine, 2.1 million tons (16%) were collected at the average yield of 48.5 MT/ha, the press service of the Ministry of Agrarian Policy of Ukraine reports.

BELARUS

Stocks of sugar with industrial enterprises amounted to 26.8 thousand tons on September 1, 2018, which is 63.3% less than it was on August 1, 2018, reports the National Statistical Committee.

On September 27, 2018, sugar beet was harvested from an area of 26.7 thousand hectares or 26.8% of the area sown (in 2017 - 25.7 thousand hectares), the Ministry of Agriculture of the Republic of Belarus reports.

Sugar.Ru

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