Fourth quarter sugar prices may continue to rise

As the trading department of the Ministry of Commerce, the industry report released yesterday by the Kunming Merchandise Wholesale Market Center stated that sugar prices may continue to strengthen in the fourth quarter of this year.

According to the report, due to the fact that the amount of raw sugar imports in the fourth quarter of this year could not be too large, the major sugar companies raised their spot prices accordingly. The news from Guangxi Sugar Net indicated that yesterday, the sugar price in Liuzhou's wholesale market still rose strongly, and the spot price of the main producing areas increased slightly. In Liuzhou, the middlemen offered a price of RMB 7,420/ton, and the offer price was raised by RMB 40/ton. In Kunming, the middlemen quoted RMB 7,250 to RMB 7,260/ton, and the offer was raised by RMB 10-20.

The British trading company Czarnikow stated that the global sugar market price has returned to the high level of 30 years ago, which is due to the supply shortage in the two crop years. The current global inventory level has dropped to a low level. The Kunming Merchandise Wholesale Market Center stated that China’s supply will also be reduced. The output of beet sugar in the northern region is expected to be reduced by 350,000 tons to 400,000 tons, and the sugar production in Yunnan and Guangdong Province may be reduced by 100,000 tons in the 2009/2010 press period. 200,000 tons. Data from Kunming Sugar Net shows that the reduction in production is due to climate and planted area. In 2009/2010, the sugarcane planting area in Yunnan was about 4.5 million mu, and in 2010/2011, the sugar cane planting area in Yunnan Province was about 4 million mu. Affected by dry weather, the actual harvested area is about 3.89 million mu, with an estimated sugar production of 2 million tons.