The November 2016 RV price for the 2016/17 season, in respect of cane delivered in October 2016, was declared at R4 923.61 per ton. This represents a decrease of R37.06 compared with the previous price (October 2016 for cane delivered in September 2016). This decrease is due mainly to the 0.61% decline in the Sugar:RV Ratio (91.17% vs. 91.78%) which, if viewed in isolation, accounted for R32 of the decline in the price. The balance was due to the drop in the crop (both cane and sugar production) and the LMDE. Sugar production and the LMDE have opposite effects on the RV price but the sensitivity of the LMDE is slightly more pronounced, thus resulting in a marginally net negative impact. Gross sugar production (1.570m ton vs. 1.590m tons) and the LMDE (1.553m tons vs. 1.573mtons) both declined by 20 152 tons yielding a net negative effect of R3 on the price. Despite the improved cane production trend in recent months the poor quality has not yielded a corresponding increase in sugar production and this has left no sugar available for export.
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