July 2022/23 RV commentary

The fourth provisional RV Price for the 2022/23 season, which is payable at the end of July 2022, has been declared at R5837.58 per RV ton. This represents a substantial increase of R175.19 per RV ton compared to the previous RV Price estimate. The sharply higher price is driven by a weaker weighted average estimated Rand to US Dollar Exchange rate (R16.66/US$ vs R15.36/US$), a higher sugar:RV ratio (93.69% vs 92.98%) and an increase in the weighted average world sugar No. 11 price (US20.01c/lb. vs US19.83c/lb.). There was also a R11m reduction in the export rebates budget. Negative price factors included a decrease in the molasses production estimate (0.805m vs 0.810m) and higher industry costs (R779m vs R760m), largely due to higher carry-over storage and financing costs