FAS RUSSIA SUMMED UP RESULTS OF EXCHANGE TRADE IN AGRICULTURAL PRODUCTS FOR 2023

The key was the expansion of sugar exchange trading – compared to 2022, the volume of its sales almost doubled

In 2023, trading volume of white sugar amounted to 261 thousand tons.

These figures were announced at a meeting of the subcommittee of the Exchange Committee under the FAS Russia on the development of organized trading in agricultural products.

The increase in sugar exchange trading became possible as a result of the implementation by market participants of their voluntary commitments to sell products on the exchange.

It allowed NTB JSC to launch the process of forming an exchange index for sugar. It is assumed that it will be calculated based on the results of organized sugar trading on a daily basis as a weighted average price for each of the three federal districts – the Central Federal District, the Southern Federal District and the Volga Federal District. After the approval of the index calculation methodology by regulators, it will become the base asset for futures contracts. It is scheduled for approval in the 2nd quarter of 2024.

Three over-the-counter indices for white sugar are also currently being formed at NTB JSC: the Central Federal District, the Southern Federal District and the Volga Federal District.

The FAS Russia noted that the volume of sugar exchange trading is still below the target value. The FAS Russia recommended that active measures should be taken not only by major market players, but also by independent sugar producers, as well as consumers – industrial enterprises and trade organizations.

At the meeting, the expansion of the range of products of the agro-industrial complex traded on the stock exchange was also noted. In particular, such goods as margarine, peas, flax, butter, as well as full-fat dairy were put up for auction.

It became possible due to the development of stock trading in the mode of commodity auctions at NTB JSC. Low barriers to the output of new products and direct access to trading by market participants characterize such trades. Over the past year, about 600 customers made transactions at commodity auctions. The total trading volume amounted to about 1.5 million tons of agricultural products worth more than 30 billion rubles.

Besides, to stimulate the introduction of new goods on the stock exchange, the FAS Russia uses the instrument of prescriptions based on the results of the review of economic concentration transactions. In 2023, following a review of the transaction for the purchase of Rusagro Group of Companies assets in the industrial margarine market, the FAS Russia ordered the company to sell at least 10% percent of the products it sells on the domestic market on the stock exchange. In January 2024, the first auctions of industrial margarine were held at NTB JSC as part of the fulfillment of the instructions of the FAS Russia.

At the meeting, the prospects for launching exchange trading in meat and soybean meal in the mode of commodity auctions were also announced.