400000 tons of reserved sugar will be released, and the domestic sugar market will fall sharply

Reporter Li Zhongqiu

Affected by the news that 400000 tons of reserve sugar from the State Reserve will be auctioned soon, the domestic sugar market fell sharply yesterday. The 0701 contract, the main contract of Zhengzhou sugar futures, fell 19 yuan to close at 5044 yuan/ton, and the contract decline in recent months was even more obvious. The spot quotation of Guangxi Bulk Sugar Trading Center was not spared. The white sugar delivered by the Center in June fell by 30 yuan per ton to 5062 yuan per ton. At present, most sugar merchants are in a "look and see" mentality.

The reporter learned that on March 27, according to the announcement spirit of the National Development and Reform Commission and the Ministry of Commerce, the Chinese Merchant Reserve Commodity Management Center held a coordination meeting on the issue, processing and transportation of 400000 tons of national reserve sugar, and convened the relevant responsible persons of sugar processing plants and storage warehouses to link up and coordinate the processing, outbound and other issues, requiring the relevant units to organize forces in a timely manner, conscientiously link up Coordinate with each other to ensure the delivery and processing of the state sugar reserve, and ensure the smooth implementation of the state sugar reserve macro-control policy.

However, according to people attending the meeting, the auction was not mentioned at the meeting, and the Chinese Business Center has no right to determine the specific time and starting price of the auction, which needs the National Development and Reform Commission and

In the face of the upcoming huge auction, domestic sugar merchants in production and marketing areas are more cautious. A sugar merchant in Nanning told reporters that the market is still affected by the auction news at the end of the month or the beginning of next month, and they generally dare not look high on the future market, so yesterday Zhengzhou white sugar gradually fell back after opening high. He believes that 5000 yuan is a key price now. If we can stand at this threshold, there will be room for growth in the future.

A person from China Sugar Century Co., Ltd. Henan Branch said that the local sales volume has not changed significantly in the past two days, but the end user inquiry has increased significantly. Now the local quotation has been inverted compared with the quotation in the production area, but the market is still in the off-season, and the sales volume has not obviously failed. Therefore, the quotation of the production area in the past two days may fall back again in the later period, and the quotation of the production area will not last too long.

However, some analysts pointed out that the result of the sugar auction of the National Reserve is still difficult to determine. From the perspective of the futures price trend of Zhengzhou Commodity Exchange, the contracts in the next squeeze season, i.e. after January next year, are significantly stronger than the recent contracts. Before that, Zhengzhou White Sugar 0701 contract had gone up for four consecutive days. This shows that the market is optimistic about the sugar price next year, and the state reserve auction of sugar only affects consumer psychology in the short term.

It is worth noting that, despite the relevant meeting held by the Chinese Business Reserve Center yesterday, the raw sugar in New York continued to rise that night. On the evening of the 27th, the price of raw sugar in the New York futures market hit a three week high, driven by the buying of funds and trading banks and the rolling of May contracts into July contracts. The contract closed at 17.48 cents in May, up 35 points a day, and closed at 17.26 cents in July, up 41 points a day. On the market side, the May contract quickly rose to a high of 17.50 cents at the end of the day, and a new round of trend in the international sugar market showed signs of starting. The latest position report released by CFTC shows that the net surplus of New York No. 11 raw sugar funds is still as high as 73056.

At present, traders are taking part in the sugar week activity held in London. In the context of the international raw sugar market's demand exceeding output for the third consecutive year, the news from the sugar week activity said that most traders are optimistic about the future market.

Recently, the investment master Rogers proposed that the sugar price would rise by 300%, which caused a great response in the market. Dealers pointed out that due to the recent