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SunSirs: Agriculture: The Peak Season of Freshly Squeezed White Granulated Sugar is Coming

December 16 2019 09:27:49     SunSirs (Daisy)

1. Price Trend 

According to data from SunSirs, the price of white granulated sugar fell this week. The average price of first-grade white granulated sugar was 5,800 RMB/ton at the beginning of the week. And the average price of first-grade white granulated sugar was 5,766 RMB/ton at the weekend, and the price fell 0.40%.

2. Market Analysis 

Domestic: Domestic production is currently at the peak of the new crushing season. Southern sugar mills started to squeeze in November. The capacity of crushing has reached its peak in December, and new sugar output has continued to increase. Under the influence of two negative factors namely import and state reserve dumping, domestic sugar prices are rising. And the raw sugar prices in foreign countries are still low. Domestic traders are eager to move.

At present, the new sugar production is in full swing in the 2019/20 season. This year's Spring Festival is ahead of previous years. On the one hand, the sugar factory wants to sell sugar early to pay for accountable payable for cane. On the other hand, it also means that sugar factory can prepare for the Spring Festival in advance. Up to the end of November, the nation's total sugar production during the sugar production period was 1,127,600 tons (72,680 tons of sugar produced during the sugar production period), and the cumulative sugar sales rate was 44.67% (the same period during the sugar production period, 44.19%).

November's sugar production and sale rate is slightly higher than the same period last year. The performance was relatively mediocre, of which sugar production was higher than the average level in the past three years.

Data from the General Administration of Customs shows that from July to October, China imported 1.78 million tons of sugar, which is 91.4% higher than the same period last year. From January to October 2019, the country imported a total of 2.84 million tons of sugar, a year-on-year increase of 530,000 tons. The sharp increase in foreign sugar imports will increase domestic sugar supply.

Overseas: Thailand's 2019/2020 crushing season has started on December 1st. Thailand's sugar output is expected to decrease this season, as its total domestic sugarcane output is expected to be less than 110 million tons. Thailand's 2019/20 crushing season is expected to produce sugar. The amount will be less than 12 million tons, lower than the Thai sugar production of 14.5 million tons in the 2018/2019 crushing season, but also higher than China's annual sugar production.

3. Market Forecasting 

The sugar analyst at SunSirs believes that the domestic new crushing season has entered a peak period. Spot prices have stabilized and declined, and supply pressure is obvious. In the case of little change in sugar production, the main variables of sugar prices in the later period are dependent on import and national policies.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com

 

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