According to SunSirs' commodity market analysis system, the average domestic price of Grade I white sugar was 5,353 RMB/ton at the beginning of last week and 5,318 RMB/ton at the weekend, marking a decline of 0.65%.

Regarding domestic supply, the crushing season is drawing to a close; total domestic production for the season is projected at 12.81 million tons, an increase of 1.64 million tons year-on-year. By the end of May, crushing operations had fully concluded in Guangxi and Guangdong, while only one sugar mill remained active in Yunnan. Cumulative sugar production reached 7.6974 million tons in Guangxi (up 1.2324 million tons year-on-year) and 1.4934 million tons in Yunnan (up 0.0931 million tons year-on-year). Although Yunnan continues to produce small quantities in June, the impact on the overall supply landscape is minimal; total domestic sugar supply remains ample, highlighting the pressure of an oversupplied market.

Internationally, accelerated crushing in Brazil has created short-term supply pressure. However, factors such as India's export ban, firm ethanol prices, and expectations of production cuts due to El Niño have provided a floor for international prices, allowing them to outperform the domestic market. As of June 8, the settlement price for the benchmark July ICE raw sugar contract stood at 14.12 cents/lb, down 3.88% from the same period last month and 14.37% from the same period last year.

High domestic production and inventory levels, combined with sluggish consumption, are suppressing prices; white sugar prices are expected to exhibit a weak, fluctuating trend in the short term.

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