Daily Sugar Market Update By Vizzie – 22/01/2022

ChiniMandi, Mumbai: 22nd January 2022

Indian Market Updates

◾ Latest Update on Sugar Season 2021-22 by ISMA
According to the latest update by Indian Sugar Mills Association (ISMA) 504 sugar mills were in operation in the country as on 15th January 2022 and have produced 151.41 lac tons of. This is 8.63 lac tons higher as compared to last season’s production for the corresponding period.

Statewise Sugar Production

Domestic Trade Market

The market witnessed scanty demand.

State wise prices today:

International Market Updates
StoneX estimates world sugar balance deficit at 1.9 mmt

The global sugar production sugar balance deficit was revised, going from 1.8 million tonnes to 1.9 million tonnes, hence the deficit is reducing YoY from 3.0 mmt to 1.9 mmt. At the end of the 2021/22 cycle (OctSept), StoneX expects inventories to reach 72.4 million tonnes taking the stocks/use tattoo to 38.4%. In the coming months Indian exports seem to be viable with export parity at US 19.60/lb and sugar production more attractive than ethanol in the Brazilian market.

Bullish Factors 🔼

◾Deficit in the global sugar balance
◾Recovery of consumption in important importing players
◾Longer inter-crop period in Center-South Brazil

Bearish Factors 🔽

◾Positive Outlook for sugar production in Asian players
◾Possible higher risk aversion due to Covid-19 cases
◾Tendency for the Dollar to appreciate against other currencies and the Brazilian Real to weaken.

International Trade Market

Yesterday sugar futures contracts closed higher on international exchanges. London white sugar #5 (SWH22) closed down $1.90 at $5075.40/ton whereas US sugar #11 (SBH22) closed down 0.03 points at 18.90 c/lb.

LEAVE A REPLY

Please enter your comment!
Please enter your name here