Demand for sugar is growing, but prices remain stable: news about sugar production and exports in Russia.

Over the past week, I must admit, the demand for sugar has been very high. We continue to observe the same factors influencing demand and prices: concerns related to sugar beet harvests and escalation of military activities in key sugar-producing regions. However, the demand has not led to price increases, as sugar producers prefer to meet demand by increasing supply rather than raising prices.

It is highly unlikely that prices will significantly rise today, because the production cost of sugar from raw materials in neighboring countries has almost equaled the internal Russian price, and there is a possibility that the export quota for Russian white sugar will not be fully utilized.

The news coming from the fields is currently contradictory. There are reports of a 10-15% decrease in sugar beet yields in the Central Federal District and insignificance of frost damage.

The production cost of white sugar from raw materials is $875.11 per ton ($78.11 per kg).

As of May 30, 2024, the cost of sugar from imported raw materials:

• in Uzbekistan is $710.4 per ton ($54.93 per kg in Krasnodar including delivery) without VAT and duties;
• in Kazakhstan is $643.6 per ton ($53.61 per kg in Krasnodar including delivery) without VAT and duties.

According to Sugar.ru, in May, the rate of Belarusian sugar imports to Russia is lower than in previous months. In the first 30 days of May, 13.1 thousand tons of Belarusian sugar were imported, while in the entire April it was 18.4 thousand tons, and in the entire March - 25.5 thousand tons.

The estimate for railway exports since the beginning of May is 2.2 thousand tons of white sugar, while in the entire April it was 27.8 thousand tons, and in the entire March - 87.2 thousand tons.

Railway transit for the beginning of May saw 9.7 thousand tons of Belarusian sugar being shipped, which is 2.5 times lower than in April.

There was no export of Russian raw materials in May.

The transit volume of raw materials for the first 30 days of May stood at 59.8 thousand tons. Shipments were made from ports in Russia, Georgia, and Latvia to Uzbekistan and Kazakhstan.