SunSirs: China Sugar Prices Fell in November
December 02 2024 14:30:28 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 6,486 RMB/ton at the beginning of the month, and 6,306 RMB/ton at the end of the month, with a price drop of 2.78%.
On the supply side, the main production areas in the south will also start production in November, and the domestic market for new sugar will increase. There is an expectation of increased production in the new season, and there is a greater pressure on market supply. In addition, the import volume and the inventory carried over by sugar mills at the end of the crushing season are both relatively high year-on-year, resulting in a relatively loose supply of white sugar in the market before the start of the new crushing season. On the demand side, after the Mid Autumn Festival, the market was in a seasonal slack season, and until the Spring Festival, the market was in a state of just need to buy. The market was pessimistic about the sugar price in the new pressing season, resulting in a weak intention to stock up in the middle and lower reaches.
Internationally, sugar production in the central and southern regions of Brazil reached 1.785 million tons in the second half of October, compared to 2.358 million tons in the same period last year. The sugarcane crushing capacity was 27.167 million tons, compared to 34.659 million tons in the same period last year. The bullish factors in the raw sugar market have been largely digested by the market, and the bearish news is not enough to cause a significant drop in the market. Raw sugar maintains a fluctuating pattern.
With the large-scale opening of sugar mills in China in December, new sugar will enter the peak period of market demand, and market supply pressure will be evident. It is expected that the price of white sugar will mainly fluctuate and weaken in the short term.
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