Trading in sugar forwards for delivery of up to 90 days will start on the Moscow Exchange on March 6, 2017. The trading venue is now busy with accreditation of warehouses in the regions where sugar is produced (so far the first warehouse situated in the Belgorod region has been connected to the system). Sugar trading will be carried out using trading clearing platform Urozhai (it is now used for grain trading).
Market participants will be able to make trades directly or through brokerages. The unified access to trading in the commodities market is also stipulated, with participants who were previously allowed to trade in grain will automatically gain access to sugar trading.
Sugar trading is expected to increase transparency of pricing in the Russian sugar market. And trading in commodities will allow consumers and producers to hedge price risks.
Based on an estimate of the Union of Sugar Producers of Russia, over the next few years turnover in the sugar forward market could reach 1-1.5 mln tons per year (around 20% of the entire Russian sugar market). In monetary terms this means roughly Rub 40-60 bln.
