SunSirs: Low Inventory, Sugar Prices Continued to Rise
May 23 2023 14:02:27 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 6,880 RMB/ton, and the average price of domestic first grade white sugar at the end of the week was 6,926 RMB/ton, with a price increase of 0.67% and an increase of 18.19% compared to the same period last year.
Analysis review
Currently, China is in a low consumption season. Due to the strong performance of spot prices, sales areas are still selling normally. Some traders have increased their purchasing efforts during price adjustments. Except for some large point price traders who have good inventory conditions, most small and medium-sized traders have low inventory. In the current era of reduced production and high production and sales rates, sugar factories have little inventory pressure.
In the second half of April, the sugarcane extraction volume in the central and southern regions of Brazil was 21.003 million tons, a decrease of 3.012 million tons from 24.015 million tons in the same period last year, with a year-on-year decrease of 12.54%. India's sugar production during the 2022/23 crushing season was 32.8 million tons, a decrease of 3.5% from previous estimates. The reason for lowering the yield forecast was that adverse weather conditions in the main production areas had led to a decrease in sugarcane yield.
Market outlook
The combination of positive factors has led to a continuous increase in sugar prices, and it is expected that sugar prices may continue to fluctuate to be stronger in the short term.
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