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RUSSIA
According to the data of price monitoring by Sugar.ru, for the period from November 24 to December 01 the US dollar exchange rate rose by 1.9% (on November 24 – RUR 64.01/$; on December 01 - RUR 65.24/$). Moscow ruble price of sugar fell by RUR 0.30/kg (-0.82%), Krasnodar price also fell by RUR 0.30 /kg (-0.86%). Us dollar price of sugar fell by $ 0.015 / kg (-2.63%) in Moscow and by $ 0.015 / kg (-2.76%) in Krasnodar.
Over the past week sugar prices continued to fall. Our assumption of close "bottom" for sugar prices have turned out to be erroneous thus, on Thursday, December 1 the officially declared lowest prices were around RUR 34.3-34.5/kg, but informally the offer dropped below 34 rubles/kg for large purchases. However, even at these prices and with some manufacturers refraining from trade, the demand for sugar is low. The main intrigue of the sugar market is when Prodimex would enter the game. The largest Russian company, a producer of about a quarter of the volume of sugar in the country, is not in the game yet, and we can only guess where the price would stop when the Prodimex sugar goes to the market. Pessimism is added by high harvests in Belarus and Ukraine. Low prices in Russia and a huge harvest in Ukraine have strongly reduced the Belarusian export: if the first 11 months of 2015 Belarus delivered to Central Asia and Abkhazia, 66.7 thousand tons of white sugar transit Russia, then in 2016 season – only 15.9 thousand tons was exported. To crown it all, in 2016 Belarus has imported 50% more raw sugar than last year (257 thousand MT against 166 thousand MT last year). Unless the new markets are found, the excess of Belarusian sugar will flood to Russia. The only reason for optimism today is the export of Russian sugar, which is growing every month. In September, according to our rail cargo monitoring, Russia has exported 6.8 thousand tons of white sugar, in October – 19.4 thousand tons, and in November – 29.1 thousand tons already. According to the official figures by the Federal Customs Service, the export of white sugar in October has made 12.8 thousand MT, and it does not take into account supplies to the EAEC countries. However, it is unlikely that exports of sugar in 2016/17 Marketing Year will exceed 200 thousand MT; the total volume will be rather less than this figure.
UKRAINE
According to State Statistics Service Ukrainian agricultural enterprises were trading sugar at the average price of UAH 11072.8/MT without VAT in October. Compared to October 2015, the price for sugar rose by 30.3%. In September, the farmers were trading sugar at an average of UAH 10,958.9/MT.
MOLDOVA
According to local press, the autumn sowing campaign was delayed this year. Sugar beet and corn were not harvested in the north of the country.
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