West **: High sugar prices are attracting much attention, and it is unlikely that the sustainability will increase sharply.

[operation suggestion]

Zheng sugar main SR1105 contract daily up trend is running well, but this week the technical needs of the callback, continue to chase high there is a certain risk, the middle line more than one single continue to hold, bears continue to wait and see.

【Reviews】

Most varieties of China's commodity market show a high level of shock. At the same time, China's stock market witnessed a sharp decline in the market, and the extent of agricultural product sector correction was greater than that of the metal plate. Zheng Cotton suffered a large drop of 2.28% as a result of external disk technical corrections. Zheng sugar disk shock intense, the main contract SR1105 continue to give off a huge amount of futures prices sharply higher after just breaking yesterday's intraday high, then the shock down to test near 6140 to get support, mid-day boost in the collective rise in the agricultural sector , The period price recovered above the moving average. By the close of the trading day, the SR1105 closed at 6,195 yuan/ton, up 13 points, holding 690,000 lots, with 3.06 million lots.

Overnight the US dollar index rebounded to around 77 points. Commodities of most varieties fluctuated at high levels. U.S. raw sugar rose slightly. The main contract in March contract closed at 27.58 cents, up 18 points. The May contract settled at 24.90 cents, down 7 points.

【Market Analysis】

Zheng sugar main contract SR1105 closed with Yang Xian with the shadow line, volume released days. The SR1105 technology saw a double-line acceleration in the MACD, a double rise in the K and D, and a stronger technical indicator. Changes in positions, SR1105 contract positions before the main 20 more than a single 236,214 hands, empty hand 204746 hand. Huatai Holdings increased its holdings by more than 3250, while Yongan reduced its holdings by 2668. In terms of inventory, the number of white sugar warehouse receipts was reduced by 0 compared with the previous trading day and there were 0 valid warehouse receipts.

In terms of spot, the spot price of the main producing areas on Mondays soared again. Nanning: RMB 6300-6350/ton, up RMB 100/ton. Liuzhou: 6350 yuan / ton, up 50 yuan / ton. Kunming: RMB 6100/ton, up RMB 50/ton. Zhanjiang: 6350 yuan / ton, up 50 yuan / ton. Urumqi: 5700 yuan / ton, steady.

【Overview】

News surface: At present, the state reserves are rich in sugar stocks. In order to ensure the sugar market supply and stabilize the price of sugar, the National Development and Reform Commission, the Ministry of Commerce, and the Ministry of Finance decided to arrange the national reserve of sugar in batches. On October 22, the first batch of 210,000 tons was placed on the market during this crop season, and the number was increased according to the circumstances. At present, China's high sugar prices, high sugar prices have attracted the attention of relevant government departments, I believe that the latter will increase the amount of sugar storage, regulate the current high sugar prices, sugar prices rose in the latter part of the expected slowing. However, the bull market in which the weak dollar dominates international commodities will not end in the short term. The expected appreciation of the renminbi is gradually fulfilling the process, attracting large amounts of international funds into the Chinese market, and further boosting the stock market and commodity markets in China's rising market. However, the price of sugar prices continued to soar in the late period may not be large, more investors to pay attention to the high risk, to avoid high levels of quilt due to policy pressure.