Sugar news from Russia, Ukraine, Kazakhstan and Azerbaijan, Sept 22, 2016

Latest news are available in our daily reports.


Production of refined beet sugar in Russia has made 414 thousand MT in August 2016 (4.2% less than in 2015), according to information from the press service of the Federal State Statistics Service.


According to price monitoring by for the period September 15-22, 2016 the US dollar exchange rate dropped by 0.8% (on September 15: RUR 64.97/$; on September 22: RUR 64.44/$). Moscow ruble price of sugar increased by RUR 0.40/kg (+ 1.05%), Krasnodar price decreased by RUR 1.50/kg (-4,17%). US dollar equivalent price increased by $ 0.011/kg (+ 1.88%) in Moscow though price in Krasnodar dropped by $ 0.019/kg (-3.43%).

Prodimex has gone as low as RUR 35 /kg for railcar deliveries and RUR 34.50 /kg ex-warehouse; Rusagro has beaten it to RUR 33.50 /kg for railcar deliveries and RUR 34 /kg ex-warehouse. However, such low level is limited by sales volume of 20-40 tons per each buyer. Procurement of large amounts from other companies will already cost RUR 36.30-37.30/kg. Such confusion and vacillation makes the mornings for the rest of sugar companies very uncertain, forcing them to sit and wait for another trick from Prodimex and RusAgro if any. On one hand, long-term (2 weeks or more) for rail delivery of cheap sugar in the falling market makes its purchase a high-risk; on the other hand, strict volume limitations make cheap prices rather virtual, marking "minimum price on the market" rather than setting real purchase price for bulk of sugar. This situation is advantageous to buyers of sugar beet, who normally fix beet procurement price at today’s "minimum price for sugar"; in its turn, such situation restricts their own sales of cheap sugar. In fact, the average sale price of sugar ranges within the boundaries of RUR 35.00 – 36.00/kg, basis Krasnodar.


Russian consumer prices for sugar decreased by 1.4% in the period September 13 to 19, according to the Federal State Statistics Service's press service. From the beginning of September 2016 consumer prices for sugar decreased by 3.7% and from the beginning of the year (vs. end of December 2015) – increased by 6.4%. In August 2016 the price jumped to 57.37 rubles per 1k (+ RUR 1.04 compared to a month ago).


In January-July 2016 the country imported 183,400 tons of raw sugar and sugar (20.4% growth vs. 2015) for the total value of $ 76 303 700, according to the State Statistics Committee data. In January-July 2016 exports directed to 60 935.1 tons of sugar (decline by 48.2%) for the total value of $ 34 652.5 thousand (drop by 72.2%).


According to the State Fiscal Service, the export of water with sugar has decreased to 10 249 tons in August, against 12 466 tons exported in July. Earlier in June Ukraine has exported 9 800 tons of water with sugar. In January-August the export of water with sugar has made 70 200 tons.


From the beginning of the season the 29 sugar plants have processed 1,442,900 tons of sugar beets and produced 194,400 tons of sugar, according to "Ukrtsukor".


Koksu sugar factory was launched on September 21. The factory has already received 200 tons of sugar beet from local farmers, who planted sugar beet at 200 ha. The average yield amounted to 50-55 tons from hectare. The beet acreage in Almaty region makes 6800 hectares (up by 3.0 hectares from 2015 season).



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