During the National Day holiday, the international raw sugar market was really “hot”! Raw sugar futures on the Intercontinental Exchange have risen all the way up, breaking through the 20 cents/pound integer mark, reaching a new high in nearly 19 months. However, domestic raw sugar futures failed to continue their strong rise after the holiday season, and remained volatile after a brief surge. Industry insiders said that concerns about production cuts in India and Thailand caused by Brazil's supply disturbances and the El Niño incident have jointly boosted international sugar prices, but high domestic inventories and expectations of increased production in the new season are still suppressing Zheng Sugar futures performance. In the short term, a stronger external market is expected to boost the domestic sugar price operating center, but it is difficult to directly spur a unilateral rise in the market. It is worth noting that there may be a deviation between domestic sugar cane growth and market production growth expectations. Once subsequent production falls short of expectations, the logic of rising Zheng Sugar futures prices may usher in an important shift.

During the National Day holiday, the international raw sugar market was really “hot”! Raw sugar futures on the Intercontinental Exchange have risen all the way up, breaking through the 20 cents/pound integer mark, reaching a new high in nearly 19 months. However, domestic raw sugar futures failed to continue their strong rise after the holiday season, and remained volatile after a brief surge. Industry insiders said that concerns about production cuts in India and Thailand caused by Brazil's supply disturbances and the El Niño incident have jointly boosted international sugar prices, but high domestic inventories and expectations of increased production in the new season are still suppressing Zheng Sugar futures performance. In the short term, a stronger external market is expected to boost the domestic sugar price operating center, but it is difficult to directly spur a unilateral rise in the market. It is worth noting that there may be a deviation between domestic sugar cane growth and market production growth expectations. Once subsequent production falls short of expectations, the logic of rising Zheng Sugar futures prices may usher in an important shift.