[futures perspective] Huaxin Futures: Raw sugar weak Zhengtang 9-1 lower

With sufficient supply, the original sugar rebound ended again, and the 10 contracts closed down 1 % at 11.41 cents. The Brazilian squeeze data, released this week, is expected to remain low year on year, producing sugar or around 2.3 million tons. Dry weather continues, the number of days of squeeze is not affected, the sugar rate remains high, and the market has been lacking in speculation about Brazil's dry weather. Or offset by increased production in India and Thailand. Technically, if the 11-11 .2 cents area below falls, a low 10.13 cents will be another important target in the medium term. Under the background of 16 million tons and 12 million tons of raw sugar in the two consecutive squeeze seasons, even if the production of weather and other factors is not as expected, it will still be in excess, causing the raw sugar to continue to fall.

Zhengtang's January contract began to stabilize and return to a 5000 integer position. Prior to this, the market speculation's straight-up expectations began to recede. The 9-1 spread fell back to around -100 again. Kunming's offer was 4,900 yuan, making it difficult for the September contract to return to 5000. Price, The 901 and 905 are near the 5000 price, and the pattern is far higher and near low. The market understands that the price difference for the spot transfer is far away. There are several hundred tons of beet warehouse receipts written off, but the total amount is basically unchanged. 200,000 tons of warehouse receipts still suppress the surface of the warehouse. Even if the position is not proportional to the warehouse receipt, the shorts are still not worried about the risk of forcing the warehouse. Holding positions, individual long seats began to cut positions, the market previously expected part of the situation. Sugar prices performed fairly well after the rebound in commodities, and the rebound in the past month partially repaired the oversold index, unless the spot can improve, or maintain a shock near 5000. Pay attention to the official national sales volume and spot quotes in June, and the shock thinking is appropriate.
From: Kunshang Sugar Network