According to the monitoring of the commodity market analysis system of SunSirs, the average price of domestic first grade white sugar was 5,353 RMB/ton at the beginning of last week, and the average price of domestic first grade white sugar was 5,353 RMB/ton over the weekend, indicating stable prices.
Domestically, there is sufficient supply of sugar sources, and sugar factories face significant pressure in terms of shipment, especially in Guangxi and Yunnan regions where they face certain sales pressure. The demand for pre holiday stocking remains stable, but the demand for end consumer goods is slightly weak. The pace of mid to downstream stocking is average, and the overall purchasing power of the market is insufficient. Customers are mostly adopting a wait-and-see attitude. The demand is clearly weak, and market pressure is continuously accumulating.
Internationally, Brazil has entered the end of the crushing season. In the first half of December, the central and southern regions produced 254,000 tons of sugar, a year-on-year decrease of 28.76%, with a sugar production ratio of 31.47%. The cumulative sugar production was 40.158 million tons, an increase of 0.86% year-on-year. Thailand's crushing performance did not meet expectations, and Indian sugar mills have started large-scale crushing. As of the end of December, 11.897 million tons of sugar have been produced, an increase of 25% year-on-year. The crushing progress has accelerated comprehensively, putting pressure on sugar prices. However, the low sugar prices have made it difficult to fulfill India's export quotas for the new crushing season, and it is expected that the actual export volume will shrink, providing support for sugar prices.
Domestic sugar industry insiders are mostly adopting a wait-and-see attitude, with weak demand. In the short term, it is expected that sugar will mainly fluctuate.
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