Russian market - Latest Sugar News - Fork Cast

Sugar factories of Prodimeks Holding set a record in sugar beet production - 1 million tons. The processing plan is being followed, and the completion of production in different regions is scheduled for December 2025. Stavropolsakhar has already finished the season.

8 contracts for white sugar were sold on the National Commodity Exchange and 1 contract on SPbMTSB. The maximum trading price was 57000 rubles/ton on SPbMTSB and 56800 rubles/ton on NCE.

The Branch of the Holding "Tavros" will not pay dividends for the first 9 months of 2024 due to financial difficulties. Dividends of 1.9 thousand rubles per share will be redirected to finance other companies in the holding. Minority shareholders can expect payments in January 2025 after the funds are reserved.

In Krasnodar region, sugar beet yield has decreased from 552 to 352 c/ha. In Voronezh region, 27 thousand hectares were replanted due to frosts, resulting in a yield of 389 c/ha. In Kursk, 4.4 million tons were harvested with a yield of 450 c/ha. Lipetsk region obtained 4.1 million tons due to frosts and drought. Orel region increased the yield by 57 thousand tons, while Tambov region harvested 4.5 million tons.

There was a stable situation in the sugar market: demand remained low, prices hardly changed. Production decreased due to the decline in the quality of sugar beets, however, there is still a surplus. Sugar and raw sugar exports decreased, while imports were cut by a third. The shortage of distillers grains supply to China affected the overall export volume.

The Chishmin Plant in Bashkortostan has started supplying sugar beet pulp to Uzbekistan. A batch of 20 tons was sent in November, with plans to increase the volumes to 1000 tons monthly. Beet pulp is in demand in Uzbekistan's livestock farming and is considered an effective feed additive.

The plant has expanded its capacity after modernization and changed its strategy, focusing on supplies to China and Kazakhstan.

In 2024, farmers in the Kursk region harvested around 2 million tons of sugar beets, which is 23% less than the previous year, due to extreme conditions.

The average yield is 434 centners per hectare.

The sugar beet harvest in the EAEU countries this year amounted to more than 31.8 million tons, with an increase in yield in Belarus, Kazakhstan, and Russia.

There are a total of 73 sugar processing plants operating in the EAEU territory, where 2.85 million tons of sugar were produced.

In Tatarstan, an increase in sugar production is expected compared to last year. 61% of the beet planting area has already been harvested, with a yield of 457 centners per hectare. It is planned to harvest more than 2 million tons. There will be no sugar shortage, and prices will remain stable.

The Ministry of Agriculture of Russia has noted the lack of rain for the successful sowing of winter crops. Planting 20 million hectares has faced problems due to lack of moisture. The solution to the problem may depend on the weather, so calling upon the Prophet Elijah is considered possible.

In 2024, sugar beet production in Russia is expected to decline by 20% to 42 million tons. The yield has decreased by 20.7%, but the sugar content in some regions has increased to 18-20%. In Bashkortostan, the yield has increased, but the sugar content has fallen. The plant in the region will be able to process up to 1 million tons of beets.

Wholesale prices for sugar have slightly decreased after the increase. The main factors contributing to the price hike include: weakening of the ruble, increase in global prices, proximity to conflict zones, and a dry September. The most critical situation is observed in the Voronezh, Tambov, and Belgorod regions.

The sugar production forecast is 6.3-6.4 million tons. The cost of sugar production ranges from $713.9 to $926.92 per ton. The volume of Russian sugar exports has increased, with one-third directed beyond the EAEU.