Background
In the 2008/09 press season, the sugar market is in a big reversal. The main reason is the main producing areas have a substantial decrease in sugar production. The state purchasing and storage, production fell, the government macroeconomic regulation and control and so on have brought greater volatility to sugar prices.
In the new press season beginning from Oct. 2008, there are several events that influence market trends:
The Yield
Under the impact of last yearfs frozen disaster and sugarcane farmersf declining input in sugarcane, sugar cane production has dropped significantly. Beet sugar production in the north and cane sugar production in the south appear to increasingly decline, particularly the main producing area Guangxifs sugar production fell by 1.8 million tons, which created a foundation for sugar market recovery.
Consumption
Sugar consumption in 2008/09 press season is almost the same as the last season, about 13 million tons. Through analysis, this is mainly due to the impact of the economic crisis and sharp price rise in post-phase led to the use of other alternatives, replacing part of the sugar share.
Imports and Exports
The impact of international sugar shortage in the new press season made international sugar price sharply increase and Chinafs imported sugar prices continued to rise. The import volume of the post-phase gradually declined. The full-year import volume had greater year-on-year increases.
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