China to sell 126,700 T of white sugar from reserves on Sept 27

BEIJING, Sept 22 (Reuters) - China will auction 126,700 metric tons of sugar from its state reserves on Sept. 27, Huashang Reserve Commodity Management Center said in a notice on Friday.

The auction will include 26,700 tons of old crop white sugar with a floor price of 6,500 yuan ($890.40) per ton and 100,000 tons of white sugar produced in 2023 with a floor price of 7,300 yuan per ton, the notice said.

The sale is aimed at ensuring the stable operation of domestic sugar supply and prices, according to the notice.

Global sugar prices have surged to a 12-year high this year, reducing Chinese imports while domestic output also declined.

The auction volume is less than analysts' expectations of 300,000-500,000 metric tons, although it is unclear whether China will hold more auctions.

China relies on sugar imports, predominantly from Brazil, to meet demand of about 15 million tonnes a year.

($1 = 7.3001 Chinese yuan)