The price of white sugar will be more and more influenced by the international market, and the white sugar futures opened by Zheng Shang provide a real hedging place for white sugar production, processing and circulation enterprises.

The trend of sugar futures is related to the following factors:

(A) the relationship between supply and demand of sugar spot market

Generally speaking, for supply, the increase of commodity supply will lead to the decline of price, and the decrease of supply will lead to the increase of price; As far as demand is concerned, an increase in commodity demand will lead to an increase in prices, while a decrease in demand will lead to a decrease in prices. The supply and demand of sugar also follow the same law.

(2) Climate and weather

Sugar, as an agricultural and sideline product, both spot price and futures price will be affected by climate and weather factors. Sugarcane has the characteristics of high temperature and strong light, high water demand and high fertilizer absorption in growing period, and it has special dependence on light, heat and water conditions that constitute climate resources. Drought, flood, strong wind, hail, low temperature frost and other weather have disastrous effects on the growth period of sugarcane, which will be long-term once formed. For example, frost occurred in the main sugarcane producing areas in China at the end of 1999/2000, which not only reduced the sugar yield by 2 million tons in the sugar-making period of 1999/2000, but also reduced the germination rate of ratoon sugarcane, and reduced the sugar yield again in the sugar-making period of 200012000, which led to a change in the relationship between supply and demand, and the sugar price changed from 6.

Besides paying attention to the climate and weather in China, we should also pay attention to the climate and weather changes in major sugar exporting countries. For example, Brazil's climate is influenced by marine climate, and global climate anomalies have a greater impact on Brazil, while sugarcane production is closely related to climate change. For example, in 2000, Brazil's sugar production also decreased by about 2 million tons.

(3) Seasonality

Sugar is a commodity that is produced seasonally and sold annually, and its sales have its inherent laws. In China, from 10 to April of the following year, sugarcane is intensively harvested. Due to the centralized listing of white sugar, the supply of white sugar is very sufficient in the short term. With the passage of time and continuous consumption, the inventory of white sugar is getting less and less. Prices often change with it, which has seasonal characteristics.

Policy factors

Relevant policies of international sugar organizations, subsidies to sugar producers in EU countries and production support policies of the US government all have an important impact on the world sugar supply. The import and export policies and tariffs of sugar in various countries are also factors that cannot be ignored. For example, the United States implements a quota system for sugar management, and imports sugar from designated countries according to quotas, and the import price is generally higher than the international market price. The United States does not export raw sugar, but only a small amount of refined sugar. At the same time, the United States exports a lot of corn syrup to the international market. Therefore, if sugar-producing countries export to the United States, they must first obtain quotas and import from the United States. Brazil, Cuba and CIS control sugar production in a planned way by controlling planting area. Due to the government's intervention, sugar prices at home and abroad have a certain linkage and often deviate.