Newsletter summary

There is a clear increase in domestic sugar production in 2023 to 24.BaccaratchinaThe import cost is reduced, and the import volume is expected to increase in the second half of the year. Although the supply side exerts pressure on sugar prices, the increase in sugar purchase price and the decline in sugar production rate will increase the cost of sugar production. The cost of sugar production in Guangxi reaches 6000 yuan / ton, the highest in 10 years. It is expected that the spot price of white sugar will rise to 6200 yuan / ton.

Text of news flash

[sugar output hit a record high in 2023x24 pressing season, import increment is expected to pull down sugar prices] with the end of the domestic white sugar production season in 2023x24, sugar output increased to a new high, coupled with international sugar pricesBaccaratchinaThe decline in import costs will bring opportunities for non-quota imports, indicating that imports of sugar products are expected to grow in the second half of the year. From the supply side, although the white sugar market in 2023 and 24 exerts some pressure on sugar prices, the increase in raw material purchase prices and the decrease in sugar production rate are expected to push up the theoretical sugar production cost of white sugar and is expected to reach the highest level in nearly 10 years. The production cost of sugar mills in Guangxi has risen to the highest point in nearly 10 years, and the cost per ton of sugar has reached about 6000 yuan. Despite the market pressure, this rising cost is expected to support the spot price of white sugar and keep its bottom price rising. According to market analysis, around 6200 yuan / ton will provide strong support for the spot price of white sugar.