Today (Feb 25), 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. As of 11:30 am, the most-active May contract ended 70 CNY/tonne higher at 5,514 CNY/tonne with the high of 5,541 CNY/tonne and the low of 5,447 CNY/tonne; nearby March contract settles 72 CNY/tonne higher at 5,470 CNY/tonne with the high of 5,470 CNY/tonne and the low of 5,412 CNY/tonne.

Spot sugar prices generally move higher today, but groups offer a discount for big orders. New sugar is priced at 5,400-5,480 CNY/tonne in Guangxi, an increase of 20-40 CNY/tonne from yesterday; in Yunnan, new sugar is priced 20 CNY/tonne higher at 5,390-5,400 CNY/tonne in Kunming and 5,360-5,370 CNY/tonne in Dali; new sugar is offered 30 CNY/tonne higher at 5,380-5,420 CNY/tonne in Zhanjiang, Guangdong; new sugar is also 30 CNY/tonne higher at 5,360 CNY/tonne in Hainan.

Processed sugar prices all increase today, but some groups take a wait-and-see attitude and don’t offer the price. Grade I carbonized sugar is 80 CNY/tonne higher at 5,600 CNY/tonne in Fujian, 30 CNY/tonne higher at 5,550 CNY/tonne in Guangdong, 85 CNY/tonne higher at 5,675 CNY/tonne in Shandong, 30 CNY/tonne higher at 5,530 CNY/tonne in Liaoning yet not available in Hebei (5,470 CNY/tonne yesterday).

Zhengzhou sugar futures move higher after opening gains in the morning. Cash prices follow futures to go up. But groups offer a discount of 10-40 CNY/tonne according to different quantities ordered, so some traders make purchases on-demand. Sugar futures break through the 5,500 CNY/tonne level, raising market’s bullish sentiment again. It is expected that spot sugar will keep strengthening in the afternoon.

(USD $1=CNY ¥6.45)