Sugar price monitoring in Russia for the period from 23.05.2019 to 30.05.2019 and news from Kazakhstan and Ukraine, May 30, 2019

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RUSSIA

According to Sugar.Ru price monitoring data for the period from 23.05.2019 to 30.05.2019 the US dollar rate increased by 0,8% (on 23.05 - RUR 64,42/$, on 30.05 - RUR 64,91/$). Ruble Moscow wholesale price for sugar dropped by 0,30 RUR/kg (-0,96%), Krasnodar wholesale price dropped by 1,20 RUR/kg (-4,11%). US dollar Moscow wholesale price for sugar dropped by $0,008 /kg (-1,65%), Krasnodar wholesale price dropped by $0,022 /kg (-4,86%).

Another attempt to raise the wholesale price for sugar has not yet led to success last week. Prices have increased for a while and walked back to the level of 28 rubles/kg. It is difficult to blame someone, the closer the new agricultural season, the higher is number of those willing to sell the sugar in hand and fix their profits (more often, apparently, losses, given the price of autumn 2018) . The logic here is simple, selling today at a loss when the market is low, sugar owners do not want to wait until the price drops to the level of export parity (<26-27 rubles/kg), and if you look at the reports from the fields, we may face such prices quite in short. If until September 2019, when the sugar of the new crop starts to flow “en masse”, and the market sees a local price increase, then this will be caused only by logistical problems, and not by a shortage of sugar in the market.

According to information from international traders, a large amount of raw material goes to the region. Steamships to Armenia, Azerbaijan, Uzbekistan and Kazakhstan are mentioned with the total tonnage of about 170 thousand tons. Even if not all of them will eventually arrive in the countries of the former USSR, anyway, the remaining amount is significant will interfere with Russian exports to the countries of the Caucasus and Central Asia.

According to Sugar.Ru railway monitoring data, for 29 days of May, Russia imported only 11.4 thousand tons of white sugar (1000 tons from Ukraine, the rest – from Belarus), which is the minimum volume since November 2017. Exports, on the contrary, grew to 29.3 thousand tons (almost all to Kazakhstan), which is the maximum volume after the cessation of sugar exports to Uzbekistan. Obviously, it’s about low prices that made Russian sugar competitive. Transit of white sugar in the Russian railway is slightly lower than last month, 24.6 thousand tons against 29 thousand tons last month.

UKRAINE

According to Ukrstat data, processed by Sugar.Ru, the production of sugar in April 2019 has made 0.0 MT (in April 2018 - 0.0 MT). Total 0 MT of sugar have been produced in January-April 2019 (in January-April 2018 - 0 MT). The stocks of sugar decreased to 466950,0 MT in April 2019 (-18.66% vs. previous month, +3.70% vs. April 2018 and -41.53% vs. December 2018).

KAZAKHSTAN

By May 30, 2019, sowing of sugar beet in Kazakhstan was performed on an area of 19.6 thousand hectares out of 22.8 thousand hectares planned (in 2018 - 19.4 thousand hectares out of 21.5 thousand hectares), SugarRu was reported in the Ministry of Agriculture.

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