Today (Mar 22), the market for sugar in China is shown as follows:

The most-active contract for sugar further drops after opening low on China’s Zhengzhou Commodity Exchange. As of 11:30 am, the most-active September contract ended 15 CNY/tonne lower at 5,375 CNY/tonne with the high of 5,388 CNY/tonne and the low of 5,348 CNY/tonne; nearby May contract settles 17 CNY/tonne lower at 5,308 CNY/tonne with the high of 5,319 CNY/tonne and the low of 5,290 CNY/tonne.

Spot sugar prices keep steady with a modest decline in the morning. New sugar is priced at 5,310-5,380 CNY/tonne in Guangxi, down 10 CNY/tonne from last Friday; in Yunnan, new sugar is priced at 5,290-5,300 CNY/tonne in Kunming and 5,260-5,270 CNY/tonne in Dali, down 10 CNY/tonne from last Friday; new sugar is priced at 5,280-5,310 CNY/tonne in Zhanjiang, Guangdong with a decrease of 10 CNY/tonne; new sugar is also 10 CNY/tonne lower at 5,270 CNY/tonne in Hainan.

Processed sugar prices keep steady with a descent in coastal regions. Grade I carbonized sugar is 20 CNY/tonne lower at 5,450 CNY/tonne in Fujian, 10 CNY/tonne lower at 5,400 CNY/tonne in Guangdong, 35 CNY/tonne lower at 5,445 CNY/tonne in Shandong, unchanged at 5,420 CNY/tonne both in Liaoning and Hebei.

Zhengzhou sugar futures continue falling after low opens. With respect to spot market, participants are staying on the sideline. A sharp increase of sugar imports in January-February has depressed market sentiment, which needs time to bounce back. Plus, raw sugar futures edge lower. It is expected that sugar price will still fluctuate at the low level in the afternoon.

(USD $1=CNY ¥6.52)