Despite weak demand and ruble fluctuations, wholesale sugar prices remain stable. Learn how oversupply and high borrowing costs are affecting the market, as well as new export opportunities for Russian sugar to neighbouring countries. Discover the key factors shaping current trends and forecasts.
In the first week of December, wholesale sugar prices remained at the same level despite weak demand. This was due to the market's slow reaction to changes in the ruble exchange rate, which has lost 18% since mid-November, but has now partially recovered. Rising world prices, weakening ruble and inflation growth, which clearly exceeds the Central Bank's forecasts, should have contributed to the growth of sugar prices. However, excess supply and the high cost of credit resources are preventing this from happening. With the key rate of 21% and its possible increase, it has become unprofitable to keep funds in sugar - it is easier to sell it and invest the money in a deposit. Over the last 12 months, sugar consumption has been consistently above 6 million tonnes. According to our data, by the end of October it was 6.05 million tonnes. The cost of raw white sugar as of 5 December 2024 is $905.74/t (94.41 RUB/kg). The cost of raw sugar for production in Uzbekistan is $761.8/t (69.50 RUB/kg) and for Kazakhstan - $694.8/t (67.94 RUB/kg). Imports of sugar from Belarus in November remained at the level of October - about 30 thousand tonnes. Exports of Russian white sugar in November decreased to 85 thousand tonnes, of which more than 55 thousand tonnes went to Kazakhstan. Exports of Russian sugar to neighbouring countries are forecast to continue. The reasons are the lack of new raw sugar supplies to Transcaucasia and Central Asia, as well as high rates in Kazakhstan, which make deals with Russian sugar more favourable. Russian beet raw sugar exports in November totalled more than 40,000 tonnes, which offset a decline in white sugar supplies. Total exports of sugar and raw sugar in November - 125 thousand tonnes, and since the beginning of the season - 375 thousand tonnes. News source: https://sugar.ru