The JANUARY 2016 RV price in respect of cane delivered in DECEMBER 2015, was declared at R3 820.81 per ton. This represents an increase of R19.84 compared with the previous price (cane delivered in November 2015). The increase in the price is due mainly to the 5 400 ton increase to the LMDE, which was a consequence of December 2015 industry sales exceeding the monthly estimate by a similar volume. The 2 779 ton decline in sugar production (1.633m tons vs. 1.635m tons) and the weaker weighted average R/$ exchange rate (15.68 vs. 14.04) also contributed positively to the price change. The softer weighted average world No.11 price (14.70 USc/lb vs. 15.28 USc/lb) and the lower Sugar:RV ratio (91.75% vs. 91.79%) had a mildly negative effect on the price. The provision for a prior season adjustment, which was introduced last month, continued to impact positively on the price as a result of positive price differential compared with the previous season.
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