SunSirs: Terminal Transactions are Limited, Leading to a Decline in Sugar Prices in China
September 24 2024 11:13:39 SunSirs (Selena)
According to the monitoring of the commodity market analysis system of SunSirs, the average price of first grade white sugar in China was 6,380 RMB/ton at the beginning of the week, and 6,372 RMB/ton at the end of the week, with a price drop of 0.13%.
The main reasons for the decline in sugar prices are: on the one hand, imported sugar has reached its peak at the port, supplementing the domestic supply of sugar; on the other hand, the market expects an increase in production of sugar beet sugar from the north, which will also begin a new production season. Domestic supply is still sufficient, and as the peak season for demand side stocking approaches, spot supply and demand will once again return to a relatively loose state.
On a global scale, the drought in Brazil has raised concerns about the extent of Brazil's production increase. Due to lower than expected rainfall at the end of 2023, the production in central and southern Brazil for 2024/2025 was originally around 42 million tons, but may now be lowered to below 40 million tons. The ongoing drought may lead to a shortfall in production expectations for 2025/2026. There may be room for a downward adjustment in the international sugar market supply, and the current bear market expectations have not completely changed yet.
The domestic supply of white sugar is sufficient, and the peak season for stocking on the demand side has ended. It is expected that the price of white sugar will mainly fluctuate and weaken in the short term.
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