El Nino Lifts China Sugar Stocks as Raw Sugar Futures Jump 34%
Sugar-related stocks in China's A-share market have rallied broadly on El Nino concerns, with COFCO Sugar, *ST Guangtang and Hongmian shares hitting daily limits, while sugar-substitute names such as Sanyuan Biology, Huakang shares and COFCO Technology also gained. ICE raw sugar No. 11 futures rose 34% to 19.69 US cents a pound by September 10 from 14.65 cents in early August, while domestic white sugar futures gained 7%. Spot sugar held near RMB 5,220 a tonne amid high inventories.
Sugar-related stocks in China's A-share market have rallied collectively in recent sessions amid El Nino concerns. COFCO Sugar, *ST Guangtang and Hongmian shares each hit their daily upward limits in succession. Sugar-substitute shares also rose sharply, with Sanyuan Biology, Huakang shares and COFCO Technology among the gainers.
In the futures market, the ICE raw sugar No. 11 contract rose to 19.69 US cents a pound as of September 10 from 14.65 US cents a pound in early August, a gain of 34%. Over the same period, the main domestic white sugar futures contract rose 7%.
Domestic spot sugar prices are currently holding at around RMB 5,220 a tonne. Domestic sugar inventories remain at a high level.