The October 2016 RV price for the 2016/17 season, in respect of cane delivered in September 2016, was declared at R4 960.67 per ton. This represents a decrease of R34.96 compared with the previous price (September 2016 for cane delivered in August 2016). This decrease is due mainly to the 11 775 ton decline in sugar production. Under normal circumstances reduced sugar production would have had a positive influence on the RV price but due to the lack of export availability, the reduced sugar supply resulted in a 13 775 ton reduction to the LMDE (1.573m tons vs. 1.587m tons) and consequently a lower RV price. The lower sugar:RV ratio (91.78% vs. 92.32%) is an outcome of the drought conditions, which have affected both cane quality and sugar recoveries. The lower sugar:RV ratio therefore also contributed significantly to the lower RV price. Due to the prevailing drought conditions there is currently no sugar available for export and consequently the higher No.11 world market price (23.78USc/lb vs. 20.08USc/lb.) and the weaker R/$ exchange rate had no impact at all on the latest RV price.
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