Today (Jan 8), the market for sugar in China is shown as follows:

The most active contract for sugar futures on Zhengzhou Commodity Exchange extends losses after low opens. As of 11:30 am, the most-active May contract settles 93 CNY/tonne lower at 5,238 CNY/tonne with the high of 5,330 CNY/tonne and the low of 5,236 CNY/tonne; nearby January contract closes 82 CNY/tonne lower at 5,170 CNY/tonne with the high of 5,221 CNY/tonne and the low of 5,170 CNY/tonne.

Spot sugar prices decline in stability today. New sugar is priced at 5,200-5,270 CNY/tonne in Guangxi, a decline of 30 CNY/tonne from yesterday. In Yunnan, new sugar is priced at 5,290-5,310 CNY/tonne in Kunming and 5,230-5,280 CNY/tonne in Dali, flat from yesterday. In Zhanjiang, Guangdong, the price is offered at 5,190-5,250 CNY/tonne with a decrease of 20 CNY/tonne from yesterday. Likewise, processed sugar prices also keep steady with a partial decline today. Grade I carbonized sugar is respectively offered at 5,400 CNY/tonne in Fujian, down 30 CNY/tonne; 5,320 CNY/tonne in Guangdong, down 30 CNY/tonne; 5,350 CNY/tonne in Shandong, down 50 CNY/tonne; 5,320 CNY/tonne in Liaoning, down 10 CNY/tonne; 5,320 CNY/tonne in Hebei, down 30 CNY/tonne. Besides, the price of beet sugar is 50 CNY/tonne lower at 5,190-5,210 CNY/tonne in Inner Mongolia.

Sugar futures expand losses on Zhengzhou Commodity Exchange this morning, and spot price also follows to move lower. It is mainly because investors’ optimism is tempered by a sharp fall in raw sugar futures. And the adequate supply accelerates profit taking, forcing price down. However, traders are still in needs of stocking up with the forthcoming Chinese New Year holiday. Moreover, the resurgence of COVID-19 in China makes stockpiling intensive. It is predicted that sugar price downside will be limited.

(USD $1=CNY ¥6.47)