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

The most-active contract for sugar futures opens flat from the previous close and then goes down on China’s Zhengzhou Commodity Exchange. As of 11:30 am, the most-active September contract ended 18 CNY/tonne lower at 5,357 CNY/tonne with the high of 5,386 CNY/tonne and the low of 5,355 CNY/tonne; nearby May contract settles 27 CNY/tonne lower at 5,279 CNY/tonne with the high of 5,309 CNY/tonne and the low of 5,276 CNY/tonne.

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

Processed sugar prices generally go lower in coastal regions. Grade I carbonized sugar is unchanged at 5,450 CNY/tonne in Fujian, 10 CNY/tonne lower at 5,390 CNY/tonne in Guangdong, 5 CNY/tonne lower at 5,440 CNY/tonne in Shandong, 20 CNY/tonne lower at 5,400 CNY/tonne both in Liaoning and Hebei.

Zhengzhou sugar futures continue the declines. 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 ¥6.50)