SunSirs: Purchases and Sales Rebounded, and Sugar Prices Rose
May 12 2023 09:53:25 SunSirs (John)
Price trend
According to the monitoring of the Commodity Market Analysis System of SunSirs, the average price of domestic first grade white sugar at the beginning of the week was 6,844 RMB/ton, and the average price of domestic first grade white sugar at the weekend was 6,884 RMB/ton, with a price increase of 0.58% and a price increase of 17.96% compared to the same period last year.
Market analysis
On the domestic side, as of the end of April during the 22/23 squeezing season, the total sales of sugar in the five major production areas in China reached 4.9426 million tons. High sugar prices had suppressed some demand. As the sugar futures of Zhengzhou Commodity Exchange followed the high rise of foreign sugar futures, terminals had to accept high sugar prices. The technical decline in foreign sugar provided opportunities for sugar replenishment and trade. The supply of white sugar was tight, and consumer demand was strong. In the short term, sugar prices may still remain strong.
US sugar prices fluctuated at high levels. India and Thailand may face drought issues, and there is a risk of sugarcane production reduction. The increase in weather risk premium had kept US sugar strong, coupled with strong production expectations in Brazil, due to logistics constraints, the market is concerned that Brazilian sugar cannot be exported in time, and the tight supply and demand situation may continue in the short term.
Market outlook
The pattern of tight global supply and demand still exists. Despite Brazil's abundant production, the initial suppression of sugar prices is limited. In addition, summer is the peak season for sugar consumption, and it is expected that sugar prices may fluctuate to be stronger in the short term.
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