Today (Apr 28), the market for sugar in China is shown as follows:

The most-active contract for sugar futures moves higher after opening high on China’s Zhengzhou Commodity Exchange. As of 11:30 am, the most-active September contract ended 52 CNY/tonne higher at 5,560 CNY/tonne with the high of 5,594 CNY/tonne and the low of 5,511 CNY/tonne; nearby May contract settles 39 CNY/tonne higher at 5,463 CNY/tonne with the high of 5,497 CNY/tonne and the low of 5,417 CNY/tonne.

Spot sugar prices generally go up today. Grade I sugar is priced at 5,460-5,530 CNY/tonne in Guangxi, an increase of 50-60 CNY/tonne from yesterday; in Yunnan, grade I sugar is priced at 5,400 CNY/tonne in Kunming and 5,370 CNY/tonne in Dali, a rise of 50-60 CNY/tonne.

Processed sugar prices take general rises in coastal regions. Grade I carbonized sugar is 50 CNY/tonne higher at 5,620 CNY/tonne in Fujian and 5,610 CNY/tonne in Jiangsu, 40 CNY/tonne higher at 5,530 CNY/tonne in Guangdong, 50 CNY/tonne higher at 5,690 CNY/tonne in Shandong and 5,540 CNY/tonne in Liaoning, and 30 CNY/tonne higher at 5,5330 CNY/tonne in Hebei.

Buoyed by strong sugar futures on both domestic and external exchanges, spot sugar price keep moving higher today. Sugar is in short supply in domestic market, which will likely bolster sugar market to keep strengthening. But considering nearly end of stockpiling ahead of Labour Day holiday, the pace of sugar deliveries could slow down compared to earlier days. This will potentially increase the risk on high levels. Thus, buyers had better purchase in demand and be cautious in chasing up prices.

(USD $1=CNY ¥6.49)