News summary

The sugar market has limited downside risks in the short termeagamescrypto, SR409 contract has 5800 price support. Supply in the international market is becoming loose. We are concerned about changes in Brazil's production in the new quarter and domestic demand in the second quarter, and recommend a short selling strategy on rallies.

Newsletter text

[White sugar market: Facing downward pressure in the short term but limited space]

Recently, the trend of the white sugar market has shown short-term downward pressure, but the room for decline is considered relatively limited. According to analysis, the price of white sugar has a strong support point at the price of 5800 yuan per ton.

[Contract No.: SR409]

In the international market, Brazil's 23/22 crop season has come to a successful conclusion. Although export volume remains at a high level, output in India and Thailand has failed to meet expectations, indicating that the 23/24 crop season will shift from tight supply to loose pattern. The market's eyes have turnedeagamescryptoThe 24/27 crop season is over. At present, a new production season has begun in central and southern Brazil. The entire season's output is expected to be higher than the same period in previous years, and the high sugar ratio is expected to continue. Although dry weather may have a certain impact on production, overall production is expected to remain at a high level.

[Long-term trend: Shorter]

Although the long-term trend is temporarily biased towards bearish, close attention should be paid to the risks and interference that future weather in Brazil may cause to the market.

[Domestic market: The peak period of sugar production is over, and inventories are lower than the same period in previous years]

In the domestic market, with the end of the peak period of sugar production and the accelerated sales process, the current inventory level is lower than the same period in the past few years. As the second quarter begins, it is expected that the improvement in downstream demand will provide certain support for white sugar prices.

[Operational suggestions: Focus on short selling on rallies, pay attention to production in the new quarter and de-warehousing in the second quarter]

In terms of operation, investors are advised to focus on short selling operations on rallies, and continue to pay attention to Brazil's production situation in the new quarter and the domestic destocking progress in the second quarter.