Why China’s sugar stockpiles may blunt an El Nino-fuelled global supply crunch
China is expected to slow sugar imports for the rest of the year as concerns grow over a global supply crunch and higher prices, with Thailand – the world’s second-largest exporter – facing a sharp drop in production. The world’s second-largest economy relies on imports for about a third of its sugar supply, though high domestic stockpiles are expected to cushion the impact. Analysts estimated…
China's sugar stockpiles are expected to mitigate the impact of an El Nino-fuelled global supply crunch, according to the South China Morning Post. With China relying on imports for about a third of its sugar supply, strong domestic production is anticipated to cushion the impact. Analysts estimate only moderate price increases in the domestic market, which is considered a strategic agricultural commodity under Beijing's food security agenda.
Thailand, the world's second-largest sugar exporter, is projected to see a significant drop in production due to El Nino-driven dryness, with total output expected to fall below 10 million tonnes. This follows a steady rise in global sugar prices, and China's import policy for the sweetener has already shown signs of tightening, with the out-of-quota import window closing.
Brief written by urgent.news from South China Morning Post's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
