June 2021 RV Price Commentary

The latest provisional RV Price for the 2021/22 season, which is payable at the end of June 2021, has been declared at R5195.85 per RV ton.

This represents a very slight decrease of R0.28 per RV ton compared with the previous price estimate. Negative price factors included a marginally weaker weighted average world sugar No. 11 price (US17.54c/lb. vs US17.65c/lb.) and a stronger weighted average estimated Rand to US Dollar Exchange rate (R13.92 vs R14.25).

Conversely, positive price factors included an unexpected rise in the sugar:RV ratio (93.97% vs 93.71%), a further decline in the gross sugar production estimate (2.140m vs 2.154m) and a favourable local sales revenue variance of +R8m due to the inclusion of the 2020/21 finalised rebates surplus.