November 2023/24 RV Price Commentary

The eighth provisional RV Price for the 2023/24 season, which is payable by 30 November 2023, has been declared at R7 492.61 per RV ton. This represents an increase of R35.55 compared to the previous RV Price estimate.

The positive contributors to the higher monthly price estimate include a stronger weighted-average season estimated No. 11 world sugar price (US27.82c/lb. vs US26.49c/lb.), a rise in the forecasted sugar to RV ratio (93.59% vs 93.51%), a lower industry costs estimate (R759m vs R771m) and a decline in the gross sugar production estimate (2.050m vs 2.066m). The increase was partly offset by a stronger season weighted-average estimated Rand to US Dollar Exchange rate (R18.91/US$ vs R19.09/US$) and a marginally lower local market demand estimate, due to prior season adjustments (1.506m vs 1.513m).