Domestic sugar prices under pressure in the second quarter

This low-growing areas in Guangxi Sugarcane crop yields, sucrose unable to achieve the best value. Other areas of the southern Guangxi is also facing a similar predicament, in 2014/15 crop cultivation in Guangxi sugar production is around 6.6 million tons, the national sugar production is about 11 million tons. The current market for a bullish 1505 contract, based largely on the expectations, and the contract will have to face the second and third quarter 1509 to import large quantities of sugar to the port, underperformed the May contract. Expected in the second quarter, the price of sugar or face some pressure.

As of January 2015, cumulative production of sugar in Guangxi rate was 11.60 percent, down from 11.9 percent a year earlier. The main sugar-producing low rate for several reasons: First, sugar pressed to open late, the device is pressed to open the initial run-in phase, the production has not yet reached the best condition; second, planting sugar cane suffered frost and winter planting sugarcane emergence majority cold, resulting in the 2014/15 crop throughout the growing sugarcane in Guangxi new shorter cycle time; third, from July to October of sugarcane in the jointing stage, in 2014 two super typhoon caused widespread in southern Guangxi Sugarcane lodging and broken, sugarcane growing consumption of nutrients, sugar cane growing population structure has been disrupted after lodging, habitat deterioration, hollow cane; fourth, cane into maturity in October, with the diurnal temperature began to widen, sucrose gradually increase. To ensure high in sugar cane maturity, the premise is not too much rain, and from October 2014 to January 2015, the monthly average temperature in Guangxi, temperature and rainfall values ??are more than the normal year earlier value.

The decline in crop yields in Guangxi 0.5 tons / acre, sugarcane price fell 40 yuan / ton, lower household income 380 yuan / mu. Now the cost of sugarcane is the fastest price increases labor costs, to reduce costs, the majority of sugarcane farmers to take mutual ways to cut sugar cane, sugar cane cut costs 70-80 yuan / day, cut 0.8 tons of sugarcane per day / person, an acre of land cut cane cost between 280-320 yuan, loaded cane costs: 350-375 yuan artificially loading / car, mechanical loading 225-250 yuan / vehicle, the final cut sugarcane Total cost 630-695 dollars. Planting Cost: 147 yuan sugarcane seed / acre, fertilizers 300 yuan /, artificial nursing negligible, planting costs 447 yuan / mu, the total cost of the 2014/15 crop of sugarcane cultivation in 1077-1137 yuan, 493 yuan last net income / mu . This is only the farmers from the kinds of self-closing costs, such as external care workers and cut cane, sugar cane is almost no profit. So, 400 yuan / ton of sugarcane in Guangxi farmers purchase price is guaranteed price of sugar cane.Barium Carbonate