Price monitoring data by Sugar.ru and Kazakhstan imports data for 3 months, May 18, 2017

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RUSSIA

According to the Ministry of Agriculture, by May 17, 2017 sugar beet was sown on the area of 1141.0 thousand hectares or 101.1% of the forecast (in 2016 - 1.04 million hectares).

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From 11 to 15 May 2017 the consumer sugar prices fell by 0.1% in Russia, from the beginning of the year - decreased by 9.3%, according to Rosstat.

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According to Sugar.ru price monitoring data, for the period from 11.05.2017 to 18.05.2017 the US dollar rate fell by -2.3% (on 11.05 - 58.08 rubles/$; on 18.05 - 56.74 rubles/$) . The ruble Moscow wholesale price for sugar increased by 0.10 rubles/kg (+ 0.29%), the Krasnodar wholesale price went down by 0.20 rub/kg (-0.62%). Dollar wholesale Moscow sugar price rose by $ 0.016/kg (2.73%), the wholesale Krasnodar price increased by $ 0.010/kg (1.80%).

Low prices in the world market and a strengthening ruble are not conducive to the export of sugar, and it declines. During the 18 days of May, only 16.2 thousand tons of white sugar were exported by rail, while the final export in March and April was under 50 thousand tons.

Demand continues to stay low. The main market participant, Prodimex, is trying to raise prices with daily increment of 0.1 rubles per kilogram, but so far it only causes a short-term growth of buyers' interest. Krasnodar withdrew from the wagon supply market, the last company standing there was “Pokrovsky” which has announced the current cessation of sales in general on May 17, which has worsened the logistics of sugar delivery to the regions by rail. On one hand, the surplus of sugar continues to put pressure on the market, on the other hand, the past frosts and the reseeding of sugar beet in some regions reduce expectations from the future harvest, and we think it’s wise to refrain from any forecast of prices for the next period.

UKRAINE

In April 2017 the Ukrainian South-Western Railway has transported 10.3 thousand tons of sugar and 24.00 thousand tons of bagasse for export, the Ukrainian press reported.

KAZAKHSTAN

According to Statcoms, Kazakhstan imports of sugar (HS 1701) amounted to 17.97 thousand tons in March 2017. In January-March 2017, total 61.34 thousand tons were imported, of which 36.8 thousand tons were received from Russia.

Kazakhstan imports for 3 months in 2017, by country

Sugar.Ru