White sugar is mainly used as a sweetener in China, and the price increase has no obvious inhibitory effect on its consumption. When there is a gap between supply and demand, demand will not decrease. China's annual demand for sugar has maintained a steady growth trend, so the price of sugar is more affected by the supply of sugar. The seasonal fluctuation of sugar price is mainly influenced by the seasonal factors of sugar price and weather. The consumption peaks of summer drinks and Mid-Autumn Festival, Spring Festival and other holidays stimulate the consumption of white sugar, and the consumption peaks of sugary drinks in summer from June to August also stimulate the consumption of white sugar. 1 year, Spring Festival and Mid-Autumn Festival are the festivals with the largest consumption of sugar in China. Due to the large amount of sugar used in the food industry, these two festivals are 1-2 months. Downstream sugar enterprises will gradually purchase, so that sugar consumption will enter the peak period. During this period, the sugar sales rate of white sugar is in the process of steady increase. Due to the improvement of the consumption level of sugar in these holiday drinks, this quarter has become the peak consumption of sugar in a year. In addition, the rainy season is frequent from June to July every year, and the change of weather factors will affect the harvest of crops. If the sugar-producing area is repeatedly hit by heavy rain, it will directly lead to a decline in sugar production. In the annual production period, the main factors affecting the yield are planting area, unit yield and weather, and the weather is the most speculative. At this time, the price fluctuation of white sugar futures is also the most intense. During this period, funds often use weather topics to launch blitzkrieg in the sugar futures market. In just one or two weeks, sugar futures may have hundreds of points to more than one thousand points, and the basis can be as high as several thousand yuan per ton. Of course, this foundation cannot maintain the market for a long time, and sugar futures can easily form the top of the year at this time. The weather theme usually affects April. After April, there is no doubt about the weather and the output is basically clear. The first sales peak has also ended, and the tone of supply and demand for the whole year is basically determined. Characteristics of Price Fluctuation of White Sugar in China The fluctuation of output is the fundamental reason for the fluctuation of white sugar market, and the instability of production and sales is the main factor causing the price fluctuation. Since 1990s, the fluctuation of sugar market in China has four characteristics: 1. The fluctuation frequency is high. Fluctuations basically occur continuously. 2. The fluctuation period is relatively stable. Each fluctuation process lasts about 2-3 years, which basically conforms to the characteristics of sugarcane production, which is planted in one year and harvested in three years. 3. The fluctuation range is large. There are four annual fluctuations over 50%, among which the highest price in 2000 is as much as the lowest price. 4. Strong correlation. The fluctuation reflects the strong correlation between the market price of white sugar and sugar materials and the output, and the overall performance is that the price of white sugar and sugar materials rises and falls in the opposite direction and shows a regular distribution.