RV Price Avg. price per ton: R4 912.55  D'Factor: 0.430984 October 2020-2021

RV Price

Commentary for the Oct  2020 RV Price

The latest RV Price estimate for the 2020/21 season, which is payable at the end of October 2020, has been declared at R4 912.55 per RV ton. 
This represents a further considerable increase of R115.09 per RV ton compared with the previous price estimate.

 

The higher price is mostly due to notional price increases for sugar and molasses, which was effective from 2 September 2020. Other positive price factors, included a further decrease in the gross sugar tons estimate (2.128m vs 2.162m), a stronger weighted average estimated world sugar price (13.56USc/lb. vs 13.26USc/lb.) and an increase in the molasses production estimate (0.845m vs 0.843m). Negative price factors that somewhat offset a further price increase included a large decline in the Sugar:RV ratio (93.31% vs 93.64%) and a marginally stronger weighted average estimated Rand to US Dollar Exchange rate (R17.06 vs R17.08). As agreed by SASA Council last month, the LMDE remained at 1.366m.