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China Guangxi Sells Sugar Reserves on Tight Supply

Source: Reuters
04/09/2009

Beijing, Sept 4 - China's largest cane growing region of Guangxi sold 600,000 tonnes of white sugar from local reserves, a report published by the Guangxi Sugar Wholesale Market website said on Friday.

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The sales ratio of sugar surged by 13.52 percentage points to 95.6 percent compared with the past crushing season, among one of the highest in the country, said the report on the website (www.gsmn.com), indicating tight supplies.

Sugar reserves dropped to 335,600 tonnes in Guangxi, 1.34 million tonnes lower than the 2008/2009 crushing season.

Floods in July and freezing weather earlier this year have combined to cause a drop in output in the key producing areas in South China, pushing up sugar prices.

Sugar prices in China have climbed by more than 10 percent in the past month. Sugar for 2010 May delivery closed at 4,670 yuan per tonne on the Zhengzhou Commodity Exchange on Friday.



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