SunSirs: China Sugar Market Prices Fell in August

According to the monitoring of the commodity market analysis system of SunSirs, the average price of first grade white sugar in China was 6,036 RMB/ton at the beginning of the month, and 5,956 RMB/ton at the end of the month, with a price drop of 1.33%.

Domestically, the tax inclusive reference for the Guangxi market is 5,870-5,960 RMB/ton. The reference price for the Yunnan market is 5,730-5,820 RMB/ton. Affected by the decline in the market, the domestic spot market continues to decline. Although China is in the peak consumption season, with the approaching transition of the squeezing season, the pressure to reduce inventory is gradually increasing. In the future, it is necessary to closely monitor the progress of the double festival stocking and the impact of new sugar squeezing and pre-sale on sugar prices.

Internationally, Brazil is currently entering a peak period of sugar crushing, while Thailand and India are in the monsoon season with abundant rainfall, which is conducive to sugarcane growth. International sugar supply is becoming more relaxed, and strong production expectations in the northern hemisphere have suppressed the upward momentum of sugar prices. Currently, the market is waiting for the release of crushing data for the first half of August in central and southern Brazil, and it is expected that sugar prices will fluctuate weakly in the later period.

Domestic transactions fell short of expectations, leading to increased pressure to reduce inventory. It is expected that sugar prices will mainly fluctuate and weaken in the short term.

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