Russian and CIS sugar news, Oct 18, 2018

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According to the Ministry of Agriculture, as of 17 October, 2018, sugar beet was harvested from an area of 853.03 thousand hectares or 76.93% of the area sown (in 2017 – 806.93 thousand hectares).

According to Sugar.Ru price monitoring data for the period from 11.10.2018 to 18.10.2018 the US dollar rate dropped by -1,2% (on 11.10 - RUR 66,18/$, on 18.10 - RUR 65,40/$). Ruble Moscow wholesale price for sugar has not changed staying at 38,30 RUR/kg, Krasnodar wholesale price dropped by 0,50 RUR/kg (-1,39%). US dollar Moscow wholesale price for sugar increased by $0,007 /kg (+1,21%), Krasnodar wholesale price dropped by $0,001 /kg (-0,18%).

Over the week past the wholesale price for sugar has not changed, the working price range varies around RUR 35.5/kg. It seems that the local resources to increase prices, backed-up by poor expectations for the crop, and sales restrictions by large companies, has exhausted. One way or another, sugar, which was not sold in October, should someday get onto the Russian market dropping prices. The Russian production forecast for the season is still the same - 5.85 -5.90 million tons of white sugar, taking into account sugar from molasses.

According to Sugar.Ru railway monitoring data, for 18 days of October 2018, Russia imported 14.9 thousand tons of sugar (11.5 thousand tons – September total), almost all of it from Belarus. The export of white sugar by rail from the beginning of October amounted to 10.9 thousand tons, of which 9.9 thousand tons went to Kazakhstan. The transit rates of sugar in the Russian railway are quite high, for 18 days of October, 15.5 thousand tons of Ukrainian sugar and 10.4 thousand tons of Belarusian sugar were transported to Azerbaijan and the countries of Central Asia.

The global sugar market brings big surprises. For some three weeks, the price of raw sugar (TheICE, #11) increased from 9.9 to 13.7 ct/lb (+ 38%). White sugar for the same time jumped from USD 312 to 380/MT, which means that the competitive price of Russian sugar for deliveries to Azerbaijan and Central Asia is now at the level of RUR 27-28/kg without VAT.


According to the analysis of Statkom of the Republic of Belarus, conducted by Sugar.Ru, production of sugar in September 2018 has made 113.2 thousand MT (in September 2017 - 122.5 thousand MT). Production of sugar by January-September 2018 decreased compared to the same period last year by 33,15% and has made 180 thousand MT (in 2017 - 269 thousand MT).


According to the State Statistics Service, the average price of white sugar from manufacturers amounted to UAH 9460.15 per metric ton in September 2018 (RUR 22713.72/MT at the average monthly exchange rate of the Central Bank of the Russian Federation). In August 2018 the average price was UAH 9780.12/MT (RUR 23,481.97/MT).

According to Ukrtsukor, export deliveries are expected to remain at the same level in 2018/2019 MY as in the last marketing year – about 500-600 thousand tons of sugar, while the main importing countries will be Uzbekistan, Turkey and Azerbaijan.



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