SunSirs: China Sugar Prices Fell in October

According to the monitoring of the commodity market analysis system of SunSirs, the average price of first grade white sugar in China was 5,813 RMB/ton at the beginning of the month, and 5,650 RMB/ton at the end of the month, with a price drop of 2.81%.

Domestically, the sales work of sugar companies in Guangxi has entered the final stage of inventory clearance. According to normal years, sugar companies will start crushing in early November, ushering in a new crushing season for production. Yunnan sugarcane factories will start production as early as the end of October. There is a certain demand for replenishment at the terminal, and the speed of sugar shipment in Guangxi is accelerating. Under the cycle of increasing domestic sugar production, the upward drive of sugar prices may be relatively limited.

On the international front, the expectation of sustained increase in global supply surplus has strengthened, and all three major exporting countries have increased production, leading to a long-term downward trend in international sugar prices. Due to the continued increase in production by major sugar producing countries, global supply growth has entered its third year, leading to continued oversupply and a strong pessimistic atmosphere in the market.

Domestic procurement is mainly based on demand, and the overall market digestion speed is slow. It is expected that the price of white sugar will mainly fluctuate and weaken in the short term.

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