IKAR in Mass and Industry Media

Russia 2011/12 sugar export seen at record 250,000 t

Reuters

MOSCOW, March 1(Reuters) - Russia could export a record 250,000 tonnes of sugar in the 2011/12 season thanks to a record harvest which resulted in a surplus on the domestic market, a leading sugar market analyst said.

The Institute for Agricultural Market Studies estimated 180,000 tonnes had already been exported by the end of February.

"For the first time for at least 12 years we are talking about beet sugar (exports)," IKAR said, adding that the vast bulk of exports during that period were from cane raws processed in Russia under tolling schemes.

Seasonal production peaks, poorly developed logistics and a lack of outlets for the by-products of sugar refining were also factors behind the sudden emergence of Russia, formerly the third largest sugar importer in the world, on export markets.

Earlier, IKAR said it expected Russia to export 270,000-300,000 tonnes of sugar in the current crop year but revised its view downward due to improving margins on the domestic market, which led to a slowdown in exports.

"A noticeable gap between Russian wholesale sugar prices and a world prices for white sugar, which occurred in January-February, has already led to some reduction of the export rate," IKAR said.

Russia's domestic white sugar prices strengthened to $833 per tonne from $821 and were stable in roubles at 24,800 ($850) per tonne last week, IKAR said on Monday.

Global raw sugar futures slid on Thursday on signs of ample supply, in particular from Brazil.

Russia had refined 5.03 million tonnes of white sugar from beets between Feb. 27 and the start of the season in August, boosted by a strong domestic crop, the Russian Sugar Producers' Union industry lobby said on Wednesday.

01.03.12

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