Sugar in Russia becomes cheaper against the backdrop of a record increase in world prices

Published 2023년 4월 12일

Tridge summary

Global white sugar prices have reached their highest level in over a decade due to a decrease in supply from India, Pakistan, Thailand, and China, leading to a 27.5% increase in the market since the start of 2023. Despite this, sugar prices in Russia have seen a decrease on average. Russia's domestic demand for sugar is currently 103.2% satisfied, exceeding the government's goal of achieving at least 90% food security. Experts predict that the global sugar price increase may be reflected in Russian food prices in the summer, but a significant rise is not expected in Russia due to the season of deflation and the country's oversupply of sugar.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Market prices for white sugar in the world have reached a maximum level over the past 11.5 years. On Wednesday, April 12, during trading on the London ICE exchange, the cost of May contracts for the supply of a sweet product rose by 0.6% to $706.9 per ton. The last time such a high value could be observed was in October 2011. In total, since the beginning of 2023, sugar on the international market has risen in price by 27.5%. Experts attribute the observed dynamics to the news about the reduction in the supply of goods from India, Pakistan, Thailand and China. “The production of raw materials in these countries is declining due to both climatic and economic factors. The global balance of sugar is a dynamic process, and a decrease in production by at least one of the major market players always leads to price fluctuations, ”Evgeny Ivanov, a leading expert at the Institute for Agricultural Market Studies (IKAR), explained to RT. In addition, to a certain extent, the rise in oil ...

Source: Russianrt