Sugar price monitoring for the period from 14.03.2019 to 21.03.2019 from Russia and news from Belarus and Georgia, Mar 21, 2019

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RUSSIA

At the meeting of the board of the ministry held in Moscow on Wednesday, the head of the Rosselkhoznadzor, Sergey Dankvert, has announced an agreement reached with the Chinese party on endorsement of official protocols on phytosanitary requirements for the sugar beet in the nearest future.

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According to the Ministry of Agriculture of the Russian Federation, farmers in the Chechen Republic have seeded sugar beet in the of 950 hectares or 23.8% of the forecast area as of March 20, 2019. According to Soyuzrossahar, the farms of the Krasnodar Territory were to start sowing on March 20.

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According to Sugar.ru price monitoring data for the period from 14.03.2019 to 21.03.2019 the US dollar rate dropped by -2,0% (on 14.03 - RUR 65,59/$, on 21.03 - RUR 64,28/$). Ruble Moscow wholesale price for sugar has not changed from 35,70 RUR/kg, Krasnodar wholesale price has not changed from 33,60 RUR/kg. US dollar Moscow wholesale price for sugar increased by $0,011 /kg (+2,02%), Krasnodar wholesale price increased by $0,011 /kg (+2,15%).

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The decline of wholesale sugar prices continued last week. The minimum price level reached 33.2 rubles/kg (offers of “Rusagro” on the “NTB” exchange, basis Kursk region). At the auction by Tkachev Agrocomplex sugar is sold at 33.60 rubles/kg with delivery from Krasnodar. It seems to us that several issues put pressure on the market:

  • high trading commodity stocks that were formed even before last and one but last seasons,
  • sugar from the state reserve (rumours speak of its poor quality, but it is offered at 1.0 - 1.5 rubles/kg below market value),
  • sales plans, forcing companies to play short.

With a constant surplus, companies will have no choice but to sell sugar abroad, but this will happen when domestic prices would fall to the level of “export parity”, today the border line is about $ 490/MT (31.2 rubles kg) for sales in CIS and neighbouring countries.

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According to Sugar.ru railway monitoring data, in 20 days of March 2019, Russia imported 16.1 thousand tons of sugar, but this time Chortkovsky sugar plant (Ukraine) has joined the supply of sugar from Radekhiv (Ukraine) to Kaliningrad (Ukraine) and Lithuania. Exports amounted to 7.9 thousand tons (almost all to Kazakhstan - 7.7 thousand tons).

Since the beginning of March, 10.7 thousand tons of white sugar (4.4 thousand tons - Belarus) and 6.2 thousand tons from Ukraine have passed transit by the Russian rail, and the main receivers of volumes are Kazakhstan (3.8 thousand tons) and Azerbaijan (3.7 thousand tons)

BELARUS

The revenue of the Zhabinka sugar plant grew by only 2.4% to 167.94 million Belarus rubles in 2018 (RUR 5176.18 million at the average exchange rate of the Central Bank of the Russian Federation for 2018). Profit from sales decreased by 16.9% to Br 3.7 million (RUR 114.03 million). Net loss increased 5.50 times to 16.2 million rubles (RUR 499.30 million).

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Over the past year, the revenue of the Skidel sugar factory has reduced by 4.6% to 170.7 million of Belarus rubles (RUR 5261.25 million rubles at the average exchange rate of the Central Bank of the Russian Federation for 2018). Profit from sales decreased by 29.6% to 13.5 million of Belarus rubles (RUR 416.09 million rubles). Net loss decreased by 40% to 10.9 million of Belarus rubles (RUR 335.95 million rubles). Given the revaluation of long-term assets in the past year shows the total profit of 31 million of Belarus rubles (RUR 955.46 million rubles) against a loss of 15.4 million of Belarus rubles (RUR 474.65 million rubles) in 2017.

GEORGIA

According to the analysis of data by National Statistics Office of Georgia, conducted by Sugar.ru, in February 2019 the import of cane raw sugar (HS code 170114) has made $27.0 thousand ($195.0 in 2018).. Totally in for January - February 2019 Georgia imported cane raw sugar for $47.3 thousand ($15.5 thousand in 2018).

Export of cane raw sugar in January - February 2019 has made $0.0, total for 2 months 2019 - $0.0 (in 2018 - $0.0).

Sugar.Ru

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