Price trend

According to the monitoring of the Commodity Market Analysis System of SunSirs, the average price of domestic first grade white sugar at the beginning of the week was 7,370 RMB/ton, while the average price of domestic first grade white sugar at the weekend was 7,334 RMB/ton, a decrease of 0.49% in price and a year-on-year increase of 27.06% in price.

Analysis review

The production season was approaching in the north, and sugar beet factories were gradually starting production. In addition, stocking for Mid Autumn and National Day holidays had basically ended, and market procurement demand had weakened. The downstream food industry basically maintained a state of just in need replenishment. Every October, China ushers in a new white sugar production season, with northern sugar beet factories taking the lead in starting up. The earliest sugar factories in Xinjiang and Inner Mongolia usually start squeezing in mid to late September, and almost all sugar beet factories begin production after the National Day holiday.

As the weather cooled down, the consumption demand for beverages and frozen beverages had also decreased. As a major downstream field of white sugar, the beverage industry, the National Bureau of Statistics data showed that the overall beverage production from September to October decreased compared to August. In September 2023, the national beverage production reached 16.92 million tons, a decrease of 7.74% month on month; The production in October was 12.14 million tons, a decrease of 28.25% compared to the previous month.

Market outlook

After the National Day holiday, the northern sugar beet factory had fully started production, and demand had also entered a phased off-season. It is expected that the price of white sugar will continue to decline in mid to late October.

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