ChiniMandi, Mumbai: Wednesday 1st April 2020
Domestic Market: With the lockdown nationwide, trades in larger quantities aren’t taking place smoothly.
Maharashtra: S/30 Sugar rates are Rs.3050 to Rs.3140/Qntl.
South Karnataka: S/30 rates are Rs.3450 whereas M/30 rates are Rs.3500/Qntl.
Uttar Pradesh: The rates for M/30 rates are Rs.3180 to Rs.3260/Qntl.
Gujarat: The rates for S/30 are Rs.3375 to 3451 whereas M/30 are at 3405 to 3531/Qntl.
Kolkata: The rates for S/30 are Rs.3470 to Rs.3480 whereas M/30 trades rates are Rs.3510 to Rs.3530/Qntl.
Tamil Nadu: S/30 Sugar rates are Rs.3500 to Rs.3600 whereas M/30 rates are Rs.3550 to 3650.
*All the domestic rates except Kolkata are excluding GST
International: According to reports, sugar prices on Tuesday sold off with NY sugar at a 6-1/4 month low on continued pandemic-related demand concerns. Also, there is concern about increased sugar supplies since the plunge in crude oil to an 18-year low will encourage Brazil’s sugar mills to divert more cane crushing toward sugar production rather than ethanol production, thus boosting sugar supplies. Brazil’s sugar mills are also being encouraged to switch more production to sugar from ethanol since ethanol inventories are piling up. Brazil’s two largest fuel distributors on Monday declared force majeure on purchases of Brazil ethanol due to weak fuel demand, which is putting more downward pressure on ethanol prices.
Overall weakness in the Brazilian real against the dollar is another major bearish factor for sugar prices. The real fell -0.33% Tuesday to a 1-1/2 week low against the dollar and is just above last Wednesday’s record low of 5.2523 reals/USD. A weaker real encourages export selling by Brazil’s sugar producers.
London White Sugar front month contract is trading at $350.40/tn whereas US Sugar front month contract is trading at 1026/lb at the time of writing this update.
Currency, Commodity & Indian Indices:
The rupee traded against the US dollar at 75.335 whereas USD traded with BRL at 5.2397, Crude futures traded at Rs.1619, Crude WTI traded at $20.48. Indices ended in the red, sensex closed 1203.18 points lower at 28,265.31. Similarly, Nifty ended 343.95 points lower at 8,253.80