Sugar news from Russia and Belarus, Jun 07, 2018

Latest news are available in our daily reports.

RUSSIA

According to the Ministry of Agriculture, as of Jun 06, 2018, sugar beet was sown on an area of 1135.6 thousand hectares or 103.7% of the forecast (in 2017 – 1181.2 thousand hectares).

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According to Sugar.ru price monitoring data for the period from 31.05.2018 to 07.06.2018 the US dollar rate dropped by -0.9% (on 31.05 - RUR 62.59/$, on 07.06 - RUR 62.01/$). Ruble Moscow wholesale price for sugar dropped by 0.60 RUR/kg (-1.69%), Krasnodar wholesale price dropped by 0.50 RUR/kg (-1.46%). US dollar Moscow wholesale price for sugar dropped by $0,005 /kg (-0.88%), Krasnodar wholesale price dropped by $0.003 /kg (-0.55%).

Over the past week, after all, wholesale prices for sugar droped a little. It began with so-called. "kolkhoz sugar", but on Monday Big Three (Prodimex, Dominant, Rusagro) also started to reduce prices, first unofficially, and then openly, and the rest of the companies followed them. Real price continues to stay in the range of 33.00-33.50 RUR/kg (the basis of Krasnodar). But now all companies offers sugar by that price and there is no guarantee that anyone will be able to sell a significant amount of sugar at 33 RUR/kg. What is it, the attempt of large companies to trade in the market or started sugar dumping before the new season? It will become clear later by whether the price will break the level of 22.00-23.00 RUR/kg or not.

Exports of Russian sugar by rail continue to stay low. In the first week of June only 3.4 thousand tons were exported by rail (16.2 thousand tons in May, 2018), 90% of which were sent to Kazakhstan. Sugar transit by Russian railway remains consistently high in May, 2018. Since the beginning of June Ukraine delivered 9.3 thousand tons, and Belarus supplied 3.8 thousand tons.

Belarus

According rail monitoring data made by Sugar.Ru, Belarus delivered 14.9 thousand tons of white sugar transit through Russia in May, 2018. Main amount of 11.6 thousand tons supplied to Kazakhstan. In first 5 months of 2018, the Belarusian transit of sugar amounted to 68.3 thousand tons (main recipient again was Kazakhstan).

Sugar.Ru