The AUGUST 2015 RV price in respect of cane delivered in JULY 2015, was declared at R3 825.77 per ton. This represents a decrease of R7.30 compared with the previous price (cane delivered in June 2015). The decrease in the price is due mainly to the lower sugar:RV ratio (93.64% vs. 93.95%) and the dramatically lower world market No.11 price (10.54 USc/lb. vs. 12.31USc/lb.) The 11 344 ton reduction in sugar production (1.702m tons vs 1.714m tons) and the weaker R/$ exchange rate (12.77 vs. 12.56) would have impacted positively on the price but due to the relatively low export exposure in the light of the current drought conditions in the industry, the positive effect on the price was outweighed by the negative factors.
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