Sugar Market and Business Analysis in December

1.1 China’s Sugar Price Index reduced 3.66% from Previous Month

The wholesale price index ticked up in December, which averaged 5,971.9 yuan/ton, down 3.66% from last month, up 9.92% YoY.

1.2 4.09% Increase of White Granulated Sugar from November

 (1) White Granulated Sugar
The overall trend of spot price for sugar showed an decreasing trend. The average spot price for white granulated sugar was 5,945.5 yuan/ton in November, down 4.09% from the 6,203.5 yuan/ton in November, or 9.61% higher than the 5,427.74 yuan/ton in same period last year. The spot price had been 5,720.0 yuan/ton in Nanning till November 27^st, down 95.0 yuan/ton than November. 

1.3 The profit of imported raw sugar processing within the quota was 2,109 yuan/ton, and the profit outside the quota was 151 yuan/ton in November

The average of futures price for raw sugar (2003) in New York was 13.31 US cents/pound during in December, up 0.62 US cents/pound or up 4.91% from last Month, up 0.76 US cents/pound or 6.02% from the same period of last year. 
Based on the average international futures price in December. The cost of processing raw sugar imported within the quota (15%) should be about 3,566 yuan/ton (510 USD/ton), Up 199 yuan/ton (30 USD/ton) from November. The cost of processing raw sugar imported outside the quota (85%) should be about 5,524 yuan/ton (790 USD/ton), Up 321 yuan/ton (48 USD/ton) from November. The monthly average spot price in Nanning was 5,675 yuan/ton (812 USD/ton), down 334 yuan/ton (45 USD/ton) from November. The profit from processing raw sugar imported within the quota should be close to 2,109 yuan/ton, down 533 yuan/ton over last month; the profit of processing raw sugar imported outside the quota loss about 151 yuan/ton, down 655 yuan/ton over last month