Agriculture
April 26, 2011
Trading Idea: Astarta - Sugar market developments seem to be playing into Astarta’s hands. The world’s sugar stock-to-use ratio has been tough at 19% in 2010/11 . Ukrainian manufacturers do not meet internal demand for sugar, supplying the 2mmt sugar market with 1.5-1.6mmt. Prices for sugar in Ukraine now are at their all time highs of USD 1080 per tonne and we do not expect them to fall below USD 1000/tonne in 2011. On April 21 Bloomberg survey revealed analyst’s opinion that sugar price will increase on the back of Brazil supply shortages. Given the recent stock price weakness, we raise our recommendation for Astarta stock to a BUY keeping the target price unchanged at PLN 100 per share.
