The latest RV Price estimate for the 2019/20 season, which is payable at the end of October 2019, has been declared at R4098.59 per RV ton.
This represents an increase of R69.13 per RV ton compared with the previous RV price estimate.
The higher price is mainly due to a stronger estimated weighted average world sugar price (12.61USc/lb. vs 12.34USc/lb.) and a weaker weighted average estimated Rand to US Dollar Exchange rate (R15.04 vs R14.81). In addition, the gross sugar production estimate decreased marginally (2.247m vs 2.248m) and there has been a drop in the rebates budget of R24m, due to a decrease in budgeted rebate tonnages. The drop in the Sugar to RV Ratio (92.62% vs 92.86%) had a negative impact on the price. The Local Market Demand Estimate remains unchanged (1.249m), as agreed by SASA Council in September 2019.