Final 2020/2021 RV Price Commentary:

The South African Sugar Association (SASA) Council has just declared the Final RV Price for the 2020/21 season at R5030.39 per RV ton.

This represents an increase of R21.40 per RV ton compared with the previous provisional RV price estimate.

The higher price is largely explained by the following: The full season actual 2020/21 sales were used to calculate the Local Market Demand Estimate, which increased from the previous estimate (1.476m vs 1.460m); there was a further reallocation of higher refined and lower brown sugar in the LMDE; an increase in notional prices for non-industrial local sugar applicable for the carry-over tonnage; another increase in the ‘d’ factor (0.4435 vs 0.4395) which reduced RV tons; a weaker weighted average estimated Rand to US Dollar Exchange rate (R17.43 vs R17.22), and a marginal increase in molasses production of 2 088 tons.