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RUSSIA
According to the data of price monitoring by Sugar.ru for the period September 29 – October 06, 2016, the US dollar value against ruble has decreased again, this time by 2.4% (on September 29 the price was RUR 63.95/US$, on October 06 RUR 62.46/$). Moscow ruble price of sugar dropped by RUR 3.00/kg (-7.32%), Krasnodar price dropped by RUR 1.40/kg (-3.59%). US dollar equivalent price of sugar dropped by US$ 0.033/kg (-5.15%) in Moscow, and by US$ 0.008/kg (-1.31%) in Krasnodar.
As we have predicted in our previous review, no bad news from fields and none horrible weather reports provide no ground for sugar prices to grow. After the cessation of the rains in Krasnodar and Rostov regions, sugar beet harvesting has resumed and approaches the "equator" of the campaign, the plants are again busy processing beets and prices from manufacturers went down. A number of regions though behave by pure inertia while the expensive sugar continues to emerge there. Slight growth of sucrose content in sugar beet is observed, at the moment it makes 15.45% (compared to 15.37% on September 6, 2016). By the end of the week Rusagro has re-emerged at the forefront of the movement "say there is no inflation" by reducing the price to RUR 37/kg for volumes from 5 railcars. This strategy seems reasonable, given that recently the prices have dropped to RUR 33.5-34.0/kg. We will probably see a further drop of sugar prices and the question is where they will stop. Our assessment of the first level of support remains the same at RUR 34-35/kg (the price of export alternatives).
UKRAINE
Agricultural enterprises of Ukraine have traded 54.3 thousand tons of sugar in August, which is 0.56% more than in July 2016. In January-August the agricultural enterprises have sold 263.8 thousand tons of sugar, which is 59.6% less than during the same period in 2015.
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By October 5, 2016 the 36 sugar factories in Ukraine have produced 452.8 thousand tons of sugar, according to "Ukrtsukor".
KAZAKHSTAN
Sugar factory near Shal region in the North-Kazakhstan, will be launched only after a year due to a low value of local currency – Tenge, Erik Sultanov, the akim of North Kazakhstan, has explained. The plant is being built by the company "TransAgroInvest". The projected production capacity is about eight thousand tons annually. The project cost makes nearly a billion Tenge (about RUR 188 million at the current exchange rate).
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An enterprise on production of refined sugar was launched in Atyrau. The daily capacity of the enterprise is 1.5 ton which will be followed by an increase up to six tons daily.
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