| White sugar, being as an important agricultural products and necessities of life, ismore for raw materials for processing consumer goods such as beverages, food andmedicine, is especially indispensable in the food industry. White sugar is a kind ofsugar, production and consumption for domestic white sugar plays a crucial role in theworld trade for white sugar. China is one of the major global white sugar importingcountry, also the world’s third largest white sugar producer and consumer country.White sugar serves as an important bulk commodity and strategic materials, itsmarket supply and fluctuations in prices have a negligible impact on industrialdevelopment and people’s living. While China being as the world’s major white sugarproducing countries and consuming countries, making great effort to build anddevelop the white sugar futures market appears to be very necessary.China is a small number of countries in the world both producing cane sugar andbeet sugar. White sugar-yielding crops are one of the three major economic crops inChina. Currently China is the fourth largest sugar-producing country following Brazil,European Union and India; the third largest country of consumption after India andEuropean Union; but it is also a net importer of white sugar. Although totalconsumption for white sugar in China is large, but as per capita consumption is verysmall, even lower than the world’s average. Following the national development andpromotion in people’s lives, China has great potential ability for the white sugarconsumption, and is becoming the world’s top white sugar consumer market. Themain producing areas of China’s sugar crop is mainly distributed in economicallyunderdeveloped areas, which makes the sugar industry development closely related tothe adjustment of agricultural structure of these regions, and has directly affect on theaddition of farmer’s income. Meanwhile, the white sugar industry which is linked toagriculture and sugar industry and united to market at home and abroad, is affected by the government’s policies in each country. Various countries usually adopt the methodof establishing the domestic protection policy for sugar industry to ensure the stableprice for white sugar and safe supply, which considers the international market as thebuffer and transfers the uncertainty caused by the variation of price to theinternational market. Thus, the balance between supply and demand of white sugar iseasy to break, easy to produce sugar price fluctuations in the world. Whether Chinacould take a place in the fierce international competition, depends on the ability totake full advantage of the operating laws and variation trend of international marketand the ability to coordinate among the sugar industry chain. Therefore, the mostimportant work we have to do is to seriously study the formation mechanism of whitesugar price at home and abroad, analyze the relationship between the sugar industrychain and the world’s other major sugar-producing countries, and the cause, which hasimportant theoretical value and practical significance.Spot trading for white sugar in China has officially been listed in ZhengzhouCommodity Exchange in2006, also been introduced in Tianjin Bohai CommodityExchange in2011. Degree of financialisation for white sugar is increasing, reflectingthe positive demand for price forecast by market, which fully plays the function asprice signals and risk transfer mechanisms, offers the macro-economicdecision-making basis for government departments, provides the reliable price signalsfor the production and management of sugar enterprise. White sugar trading has avery realistic and practical significance on the price discovery function, and theadjustment on price of commodities and the policymaking by government.Therefore, it has a distinct practical and far-reaching significance on theestablishment for the special research on the market price of sugar. Then deepanalysis and exploration on the relationship among the market price of sugar, is verynecessary and valuable. |
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