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 6,778 RMB/ton, and the average price of domestic first grade white sugar at the end of the week was 6,828 RMB/ton, with a price increase of 0.74% and a 17% increase compared to the same period last year.
Analysis review
Domestically, Yunnan has accumulated 46 sugar mills, an increase of 32 compared to the same period last year. From the current understanding, it is expected that all remaining sugar factories will be squeezed in early May, with import costs remaining high and the price difference between inside and outside hanging upside down. It is expected that the import volume in the second quarter will be low. Currently, sugar factory inventory is low, and the sugar making group has a strong willingness to back up prices.
Brazil exported 971,592 tons of sugar in April, lower than the 1,316,800 tons exported in April of the previous year. The daily average export volume was 54,000 tons, a 22% decrease from the daily average export volume of 69,300 tons in April of the previous year. Due to port congestion, the loading time for sugar ships at Brazilian ports needs to wait at least 30 days. If El Niño weather affects production, sugar prices may further increase.
Market outlook
The sugar price is supported by positive factors, and it is expected that the spot market price of white sugar will mainly fluctuate to be stronger in the short term.
