Corporate News

Recently, Zheng Sugar showed a weak finishing situation, the main contract 1205 futures price into the range of shock market, the short-term trend is more confused.In general, under the seasonal influence of the current new sugar market, the upward pressure of sugar price is greater.Later stage is expected to continue to maintain the weak market, but also do not rule out the possibility of breaking out of the falling market.

    From the fundamental situation of the international sugar spot market, the global sugar supply and demand is changing to surplus.According to the UK and the Netherlands and other sugar forecasting agencies, the global sugar market is shifting to a large surplus of supply, and the large increase of sugar supply in the northern hemisphere has put huge pressure on the operation of the sugar market.After three consecutive years of short supply, the global sugar market will see the first global oversupply in 2011 / 2012, and the estimated sugar beet sugar production is expected to rise 21% year on year to 38.7 million tonnes.

    In terms of domestic spot market, domestic new pressing season sugar production is being carried out in an orderly manner, sugar factories in northern Xinjiang have successfully stopped pressing, and sugar factories in Yunnan, Guangdong, Hainan and other producing areas have been pressed. As of December 27, the number of open sugar extraction manufacturers in Guangxi has increased to 96, accounting for 93.2% of the total number of Guangxi sugar factories and 96.2% of the total designed production capacity of Guangxi sugar factories. New sugar has been available on the spot market. Domestic sugar imports have increased significantly this year. According to customs data, imports totaled 2.42 million tons, up 48 percent year on year. It should be said that the overall supply situation of the domestic sugar market at the current stage is relatively abundant, and the pressure brought to the sugar price in the spot market is relatively large. According to market monitoring, as of December 25 a week, the overall decline in domestic sugar prices in 10 yuan / ton-230 yuan / ton. Guangxi sugar middlemen quoted at 6,600 yuan / ton, down 100 yuan / ton from the previous week, and has been the seventh consecutive week down.

    From the perspective of the futures market, the international raw sugar futures market is affected by the uncertain macro situation, and the trading sentiment of traders has obviously weakened. In addition to the sharp contraction in trading volume, the fund's net long positions are also further reduced. According to the CFTC holdings report, total raw sugar positions increased slightly in the week ended December 20, but long fund positions plunged, with net long positions hitting a new low of 41,276 lots. Domestic zheng sugar futures, the futures price short-term shock process, the overall open position volume increased slightly, but the volatility is not large, showing that the current stage of long and short have a certain differences. However, intraday futures prices up the weak characteristics of insufficient bullish confidence, the overall market sentiment is still bearish.

    In general, under the impact of falling spot prices, in the seasonal new sugar market pressure and import imports and other fundamental pressure, technical support can have much strength is questionable.Once the sugar price is broken may bring more kill more chain reaction, long only strictly guard, with time for space may bring a turning point.

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