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RUSSIA
According to the Ministry of Agriculture, total 3 600 hectares were harvested; 162 000 tons of beets collected at a yield of 45.63 MT/ha as of August 2, 2017.
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In July 2017, consumer prices for sugar increased by 6.3%, and from the beginning of the year (compared to the end of December 2016) - decreased by 0.3%, according to Rosstat. As of July 24, 2017, the consumer prices are at the level of RUR 48.11/kg and have increased by 1.3% in a week (-1.0% since the beginning of 2017), the Ministry of Agriculture reports.
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According to Soyuzrossahar, the dynamics of sugar beet growth is as follows as of August 1, 2017:
- weight of beet is 322 g (in 2016 - 356 g, in 2015 - 347 g)
- weight of the tops is 380 g (in 2016 - 327 g, in 2015 - 395 g.).
- sucrose content -13.40% (in 2016 - 13.43%, in 2015 - 12.98%).
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The bad news: every day the price of sugar falls by a ruble.
The good news: it cannot last for more than 34 days.
According to price monitoring by Sugar.ru for the period from July 27, 2017 to August 3, 2013 the US dollar rate increased by 1.1% (on July 27 – RUR 59.91/$, on August 03 – RUR 60.58/$). The ruble Moscow wholesale price for sugar fell by RUR 3.40/kg (-8.56%), the Krasnodar wholesale price went down by RUR 4.20/kg (-11.05%). US dollar wholesale Moscow sugar price fell by $ 0.064/kg (-9.65%), the wholesale Krasnodar price dropped by $ 0.076/kg (-11.99%).
The decline of wholesale prices for sugar has continued throughout July and early August, and on Thursday, August 3, has stopped at RUR 33.8-34/kg for self-pickup by truck and railcar delivery basis EXW. In some regions, the price (basis Krasnodar minus the shipping rate) are even lower – RUR 33.20/kg. ‘Unexpectedly’ (surprise-surprise!) substantial stocks of sugar have emerged at a number of companies at factory warehouses and in storage in the regions. One can say it’s a conspiracy, but it seems to be all the easier – the industrial consumption has dropped, and the sugar, planned for delivery to industrial consumers, eventually ended up in the open market. What does the suspension of further price drop mean? Is this a temporary slowdown of fall, or will it rebound upward, it is not clear, according to a survey of wholesale companies, demand still continues to be low, if not to say none.
As we already mentioned, Russia exported 9.6 thousand tons of white sugar in July 2017, which is much lower than the level of the last months. The parameters of sugar beet are still lagging behind those observed last year, but are improving rapidly. It is possible that we might harvest beets at the level of previous season, while facing less and less opportunities for sugar exports: the world sugar prices decline; and countries, we traditionally exported sugar to, start to set up own sugar industry.
KAZAKHSTAN
According to Statkom data for July 2017, Kazakhstan sugar prices from manufacturers increased by 2.7%, and from the beginning of the year (by December 2016) - decreased by 3.8%.
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КОММЕНТАРИИ