SunSirs: Raw Sugar Futures Rise, Driving Up Sugar Prices in China
September 27 2024 09:31:52 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 6,422 RMB/ton at the beginning of the month, and 6,460 RMB/ton at the end of the month, with a price drop of 0.59%.
The expected reduction in sugar production in Brazil, coupled with the strengthening of the commodity market, has provided favorable support for international sugar prices. In the past half month, raw sugar futures have risen by 25%, driving the domestic sugar market to follow suit. At present, the number of sugar beet mills in the north is not large, and a small amount of new sugar will be launched before the National Day holiday. The inventory of aged sugar in the south continues to be consumed, and sugar mills have a mentality of maintaining high prices. It is expected that there may still be a slight increase in sugar prices before the holiday.
In Brazil, the two-week sugar production in the second half of August decreased by 6.02% year-on-year; The estimated sugar production in central and southern Brazil for the 2024/2025 crushing season has been lowered to 39.5 million tons; Before the end of September, there will be no rainfall in central and southern Brazil, and the probability of La Ni ñ a occurring in the fourth quarter of 2024 will increase, which will affect the sugarcane harvest during the 2025/2026 crushing season.
The rise in raw sugar futures has driven up spot prices, and manufacturers have significantly pushed up prices. It is expected that in the short term, the price of white sugar will mainly fluctuate and become stronger.
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