SunSirs: Adequate Supply, China Sugar Prices is Weak and Falling
November 06 2023 10:40:03 SunSirs (Selena)
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 7,278 RMB/ton, while the average price of domestic first grade white sugar at the weekend was 7,262 RMB/ton, a decrease of 0.22% in price and a 26.83% increase in price compared to the same period last year.
The spot end of white sugar is weak, and currently there is no basis for a sharp decline in raw sugar. It is difficult for Zheng Sugar to directly decline significantly due to this impact. However, the supply in the new season has increased, and the upward momentum is insufficient. Zheng Sugar was in a volatile market in the short term before the southern sugar new sugar quotation.
Internationally, ISMA in India has released a statement that, without considering shifting to ethanol production, the sugar production during the 2023/2024 squeezing season is estimated to be 33.7 million tons, a year-on-year decrease of 2.9 million tons. If we follow this expectation, India's exports in the new season will be worrying. We will closely monitor the changes in India's production in the future, which may have a significant impact on international trade flows after the first quarter of next year. In addition, after India, due to the expected reduction in production, Thailand has released a regulatory sugar export news and approved the listing of sugar as a regulatory commodity, and international raw sugar will continue to be bullish.
There is sufficient domestic supply, and it is expected that sugar prices will mainly fluctuate at high levels in the short term.
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