According to the monitoring of the commodity market analysis system of SunSirs, the average price of first grade white sugar in China was 5,341 RMB/ton at the beginning of last week, and 5,270 RMB/ton over the weekend, with a price drop of 1.34%.
Domestically, as of the end of December, Guangxi's sugar production was 1.9419 million tons, a year-on-year decrease of 809,500 tons; As of the end of December, Yunnan produced 392,300 tons of sugar, an increase of 65,400 tons year-on-year. Chen Sugar has cleared its inventory, while New Sugar is on the market and gradually increasing in volume, gradually dominating spot pricing. Downstream pre holiday replenishment has begun, but the transaction situation is not as expected. We need to pay attention to the progress of domestic crushing and the weather in the production area in the future.
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 was slightly lower than expected, but the year-on-year decline gradually narrowed. Indian sugar mills have started large-scale crushing. As of mid January, they have produced 15.885 million tons of sugar, an increase of 21.63% year-on-year. The crushing progress has accelerated comprehensively, which has put pressure on sugar prices. However, the low sugar prices have made it difficult for India to fulfill its export quota for the new crushing season. It is expected that the actual export volume will shrink, providing support for sugar prices.
The lack of favorable support for domestic white sugar has weakened demand, and it is expected that white sugar will mainly experience a volatile downward trend in the short term.
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