The price of sugar will increase in the second half of 2021.

Since mid-April, the cumulative increase in the spot price of sugar has reached about 200 yuan/ton. In areas such as the sales area and ports, the price was seriously inverted before. The price at that time was less than 5,400 yuan/ton, but now it has increased to about 5,700 yuan/ton.

The increase reached 300 yuan/ton.

1. The price of white sugar will rise in the second half of 2021. The main 2109 contract of Zheng sugar futures also broke through the previous high today, rising to a maximum of 5,635 yuan/ton in the session. The increase in the past month has reached 5,271 yuan/ton compared with the low in mid-April.

up 6.9%.

The main driving force for the rise in the domestic sugar market in the past month has come from abroad. Starting from April, raw sugar futures have been rising. Although there was a slight correction at the end of April due to capital profit-taking, the expected sugar production cuts in Brazil and the European Union still gave rise to

Sugar prices have been boosted, funds are more enthusiastic about buying, and the general rising trend of commodities has also driven raw sugar futures back to the price of 17.5 cents/pound.

2. A report released on the 6th showed that the grain price index in April rose for the 11th consecutive month. It is expected that global wheat and corn production will increase in the future.

The report pointed out that the Food and Agriculture Organization of the United Nations food price index rose by an average of 120.9 points in April, a month-on-month increase of 1.7%, and a year-on-year increase of 30.8%.

Among all types of food, sugar prices ranked first in price increases, and cereal prices resumed their upward trend.

The rise in raw sugar futures directly leads to an increase in import costs. Based on the current price of about 17.5 cents/pound, the import and processing costs of Brazilian raw sugar within the quota (15% tariff) and outside the quota (50% tariff) are respectively 4,400 yuan/ton.

and about 5,650 yuan/ton, up about 9% from a month ago.

To sum up, the current import processing cost outside the quota has exceeded the average production cost in Guangxi and reached the price of domestic processed sugar, which has strong support for the domestic white sugar market.