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RUSSIA
"Zainsky sugar" plans to process a record 1.1 million tons of sugar beet in 2016, it is projected to produce up to 150 000 tons of sugar, 35 000 tons of molasses, and 45 000 tons of granulated pulp, "Agrosila" informs.
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According to the Ministry of Agriculture, sugar beet was harvested from an area of 15.3 thousand hectares, or 1.4% of the crop acreage as of August 10, 2016 (in 2015 – 0.9 thousand ha). Farmers in Lipetsk region have started sugar beet harvesting campaign.
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According to the price monitoring data by Sugar.ru for the period August 04 – 11, 2016; the US dollar exhcane value has dropped by 2.9% (US$ 1=RUR 66.74 on Aug 04; and US$ 1=RUR 64.81 on Aug 11). Ruble prices decline in all regions under the pressure from the new season sugar. Moscow ruble price of sugar fell by RUR 3.40/kg (-7.20%), Krasnodar price decreased by RUR 4,20/kg (-9.35%). US dollar equivalent price in Moscow decreased by US$ 0.031/kg (-4.38%), in Krasnodar price dropped by US$ 0.045/kg (-6.69%).
Our earlier premonition, that the price of RUR 41.0/kg declared by "RusAgro" for the beginning of September may be overvalued, is fully justified. Today Krasnodar features offers as low as RUR 40.50-40.70/kg (exw warehouse), as well as offers of 2015 made sugar at the price of RUR 40.50/kg from producers are widely common in the central Russian regions. Facing the sharp drop in prices, RusAgro has issued a fresh new offer by reducing the price to RUR 38.0/kg by the beginning of September. Three plants, which are still under the control of "Razgulyay", accompanied by growing ex-factory sales in the central Russia (currently there are plants in Tatarstan and Lipetsk region running) add to growing bear market trends. The latest forecast by "IKAR" speaks of sugar production to 5.6 mln MT in 2016/17 Marketing Year, which could lead to market oversupply. Understanding such risks, the sugar companies seek to take profits now, avoiding going red tomorrow, thus, offering favourable forward contracts, with all of the mentioned consideration leading to price reduction. Given the current trends, the price will probably continue to slide down at the speed of RUR 0.30-0.50/kg a day in the next few days, and the support level is not yet in sight.
KAZAKHSTAN
According to the Ministry of Agriculture, sugar beet acreage has made 12 thousand ha (up by 2.7 thousand ha compared to 2015). Abundant rainfall in June and July could lead the harvest start being postponed for 7-10 days.
KYRGYZSTAN
According to the National Statistics Committee, the consumer prices for sugar increased by 0.4% in July 2016; from the beginning of 2016 – decreased by 3.3%. Year on year (vs. July 2015) growth has made 5.9%.
TAJIKISTAN
According to the rail cargo monitoring data by Sugar.Ru, Tajikistan has received 6 900 tons of white sugar in January – July 2016 by rail transit Russia (in 7 months of 2015 – 8 300 tons). Belarus and Ukraine have supplied sugar to Tajikistan in almost equal shares of about 3 200 tons.
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КОММЕНТАРИИ