China sold 150,244 tonnes of white sugar from state reserves in the September auction, the third of such sales by the government since July to help ease a domestic shortage, market officials said on Tuesday.
The sugar was sold in five-hour bidding at prices of between 3,290 ($397.5) and 3,070 yuan per tonne, said one official at the Beijing market where the auction was held. The government is offering a total of 536,000 tonnes of white sugar from reserves to help ease a domestic shortage seen at 800,000 tonnes.
Another 86,000 tonnes of reserves will be sold in mid-October before the domestic crushing season starts. China produced 10.2 million tonnes of sugar in the 2003/2004 season. Imports in the first seven months rose 103.3 percent to 833,996 tonnes, half of which came from Cuba.
Traders said prices in major growing areas had eased this week after an 11 percent jump in August after food plants stepped up purchases ahead of the Mid-Autumn Festival when sweet mooncakes are all the rage.
"Lots of food plants have already bought enough sugar for their production," said one trader at the Guangxi sugar exchange, adding the reserve sales had helped balance the market.
White sugar prices fell about 40 yuan per tonne this week to 3,200 yuan per tonne in the major growing area of Guangxi while prices stayed flat in consumer city Shanghai at 3,340 yuan a tonne.
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