Price trend

According to the monitoring of SunSirs, at the beginning of this week, the average price of primary white sugar was 5,996 RMB/ton, and at the end of the week, the average price of primary white sugar was 6,124 RMB/ton, up 2.13%, and up 5.70% from the same period last year.

Analysis review

Domestically, the harvest progress of Guangxi, the main production area, was accelerated year on year, the fact of production reduction was gradually clarified, and the middle and downstream stocks of white sugar were generally low, and there was a certain demand for replenishment. The sugar factory's shipment situation improved, and the mood of price-supportive was strong. On the whole, except for the reduction of sugar production in Guangxi due to the weather, the sugar production in other production areas was stable or slightly increased. It is estimated that the national sugar production in the 2022/23 squeezing season will be about 9.37 million tons, a year-on-year decrease of 1.99%.

In the international market, the production of Brazil's new squeezing season had not yet started, and India was at the peak of production. The expectation of the decline of Indian sugar production due to weather was strong, and the fear of periodic supply shortage supported the rise of international sugar prices. The main contract of ICE raw sugar futures had risen to the highest point of 21.04 cents/pound in nearly six years.

Market outlook

Under the effect of internal and external resonance, it is expected that the price of white sugar in Guangxi, the main production area, will reach a new five-year high of 6,300 RMB/ton in the second quarter, and the price of white sugar in the national market is expected to continue to rise

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