RV Price Commentary

The fourth provisional RV Price, for the 2026/27 season, has been declared at R6 659.26 per RV ton. This represents a decrease of R80.11 per RV ton, compared to the previous monthly RV Price estimate. The lower monthly RV Price estimate was due to a combination of a lower local market demand estimate (1.280m vs 1.335m), a decrease in the sugar to RV ratio (93.54% vs 93.75%) and a decline in the molasses production estimate (0.718m vs 0.728m). Positive price factors, that partly offset a further price decline, included a stronger season weighted-average estimated No. 11 world sugar price (US15.87c/lb. vs US14.87c/lb.), a reduced gross sugar production estimate (2.000m vs 2.013m), as well as a third partial recovery of industry obligation defaults, which were covered by a special levy at the end of the 2022/23 season, that contributed to total industry costs declining by R53m.