RV Price Avg. price per ton: R4 220.58  D'Factor: 0.401142 final price 2019/20

RV Price

Commentary for final 2019/20 RV Price

The Final RV Price for the 2019/20 season, which is payable at the end of March 2020,

has been declared at R4 220.58 per RV ton.

This represents an increase of R30.49 per RV ton compared with the previous

RV price estimate.  Full season actual 2019/20 local sales were used to calculate the Local Market Demand Estimate, which decreased marginally from the previous estimate (1.249m vs 1.251m).

Even with the lower LMDE, the higher final price is largely explained by an increase in local sugar sales revenue that resulted from an increased allocation in higher notional-priced white sugar sales

(796 292t vs 743 220t), a decrease in lower-notional priced brown sugar sales (453 184t vs 508 312t) and a further reduction in the rebates budget by R25.1m.

Other positive price factors included a stronger weighted average world sugar price

(12.99USc/lb. vs 12.92USc/lb.), a weaker weighted average estimated Rand to US Dollar Exchange rate (R14.88 vs R14.85) and an unexpected increase in the final Sugar to RV Ratio (92.00% vs 91.81%). Negative price factors included an increase in the final season gross sugar production value

(2.227m vs 2.223m).