IKAR in Mass Media

Russia June sugar imports seen at 350,000-400,000 T

21 июня 2006 года

MOSCOW, June 7 (Reuters) - Top sugar buyer Russia will import at least 350,000-400,000 tonnes of raw sugar in June, up from 211,000 tonnes in May, as demand is set to rise ahead of a seasonal peak, a leading analyst group said on Wednesday.

But imports are still forecast to be below year-ago levels, as demand will be relatively low if compared to 2005, the independent Institute for Agricultural Market Studies (IKAR) said in a monthly report.

"If domestic market prices in the next few weeks start rising, import volumes may rise to above 400,000 tonnes. But... this scenario is less likely," the report said.

"A jump in July cannot be excluded," it added.

Demand for sugar in Russia normally rises from the end of May, ahead of a seasonal peak, when summer heat will push up demand from producers of ice cream and soft drinks and people will start making fruit jam at home.

IKAR said that the low volume of imports in May would result from long holidays. Activity increased only starting the middle of the month, but prices stayed flat.

IKAR expects the sugar market to remain calm in June.

"It appears that most people built up sugar stocks in winter, when prices soared. And, as winter was cold and destroyed orchards in the south, this year's fruit crop is expected to be low," IKAR said.

Large companies have to sell sugar at a discount against earlier declared prices in order to stimulate trade, it added.

Raw sugar imports in June and May 2005 were 647,000 tonnes and 400,000 tonnes respectively, IKAR data showed.

Domestic stocks were 1.465 million tonnes of raw sugar and 100,000 tonnes of white sugar at the end of May this year, compared to 1.499 million tonnes and 368,000 tonnes respectively at the end of May 2005.

This year, Russia refined 1.29 million tonnes of white sugar from raws as of May 31, compared to 1.36 million tonnes a year ago, data from industry lobby the Russian Sugar Producers Union showed.

Source: Reuters | #sugar | Comments: 0 Views: 70

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