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Wholesale prices for sugar continue to decline, currently ranging from 58 to 59 rubles per kilogram (exw South and Central Federal Districts). Weather conditions have improved, and producers and trading companies are preparing for a profitable season.
Here is the current situation with sugar beet processing:
- Plants already processing: Ust-Labinsky (already loading sugar), Gulkievsky, Novokubansky factories;
- Sugar shipments are scheduled from August 5th to 7th: Korenovsky, Tikhoretsky, Vyselkovsky sugar factories;
- Planning to start beet processing next week: Kanevsky, Leningradsky, Pavlovsky, Timashevsky, Tbilissky, USPENSKY.
Our climate models show that rainfall conditions in beet-growing regions in July remain challenging.
In July, sugar beet production areas received only 55% of the average value for the previous 6 years. The most significant decrease in precipitation was recorded in the Belgorod region, Saratov region, and regions of the Southern Federal District (Krasnodar and Stavropol regions).
Temperatures in July continue to exceed record values, with the accumulated temperature in beet-growing regions exceeding the average for the period from 2016 to 2023 by 33%. The warmest areas are the Belgorod and Kursk regions; the least warm areas are Tatarstan and Ulyanovsk region.
The calculated cost of producing white sugar from sugar beets is $865.24 per ton ($74.51 per kilogram).
As of August 1, 2024, the cost of sugar produced from imported raw sugar beets is:
- In Uzbekistan, it is $724.9 per ton ($54.24 per kilogram in Krasnodar including delivery), excluding VAT and duties;
- In Kazakhstan, it is $658.1 per ton ($52.97 per kilogram in Krasnodar including delivery), excluding VAT and duties.
According to Sugar.ru, Belarusian sugar imports by rail to Russia slightly exceeded imports in June. 11.2 thousand tons were delivered this month.
Sugar exports by rail exceed the volumes of the previous month, with 26.0 thousand tons of Russian sugar shipped since the beginning of the month to Kazakhstan and Kyrgyzstan.
However, the transit of sugar by rail through Russia in the first half of July significantly decreased.
In July, the volume of Belarusian sugar deliveries through Russia was 2.2 thousand tons, compared to 8.4 thousand tons in June.
The transit of imported raw sugar beets amounted to 58.9 thousand tons in July. These shipments were made through ports in Russia and Latvia to Uzbekistan and Kazakhstan.
