Today (Feb 23), the market for sugar in China is shown as follows:

The most-active contract for sugar futures extends gains after opening high on China’s Zhengzhou Commodity Exchange, crossing 5,500 CNY/tonne in this session. As of 11:30 am, the most-active May contract ended 61 CNY/tonne higher at 5,493 CNY/tonne with the high of 5,526 CNY/tonne and the low of 5,392 CNY/tonne; nearby March contract settles 69 CNY/tonne higher at 5,449 CNY/tonne with the high of 5,466 CNY/tonne and the low of 5,345 CNY/tonne.

Spot sugar prices keep rising today, but still not offered by some major groups. New sugar is priced at 5,380-5,440 CNY/tonne in Guangxi, an increase of 40-50 CNY/tonne from yesterday; in Yunnan, new sugar is priced at 5,370-5,380 CNY/tonne in Kunming and 5,340-5,350 CNY/tonne in Dali, a rise of 40-50 CNY/tonne; new sugar is offered 50 CNY/tonne higher at 5,360-5,400 CNY/tonne in Zhanjiang, Guangdong; new sugar is also 50 CNY/tonne higher at 5,340 CNY/tonne in Hainan. Likewise, processed sugar prices are generally higher and partly not available. Grade I carbonized sugar is 50 CNY/tonne higher at 5,550 CNY/tonne in Fujian, 70 CNY/tonne higher at 5,470 CNY/tonne in Guangdong and 5,650 CNY/tonne in Shandong, not available both in Liaoning (5,430 CNY/tonne yesterday) and Hebei (5,430 CNY/tonne yesterday).

Zhengzhou sugar futures continue moving higher in the morning, and the most-active contract crosses the 5,500 CNY/tonne barrier. This has spurred spot traders’ enthusiasm in making purchases. With buying and selling mixed in market, it is expected that sugar prices will keep strengthening in the afternoon.

(USD $1=CNY ¥6.45)