Daily Sugar Market Update By Vizzie – 02/06/2021

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ChiniMandi, Mumbai: Wednesday 2nd June 2021
Domestic Market:
Production & Export Overview:
According to the latest reports by Indian Sugar Mills Association (ISMA) the country till May 31,2021 has produced 305.68 LMT of sugar and about 57 lac tons of contracts for export of sugar have already been entered whereas 44 to 45 LMT has been exported for sugar season 2020-21. Additionally, 4.48 LMT in Oct- Dec 2020 quarter against the MAEQ of last season 2019-20. To read more click here
Monthly Domestic Quota Announcement :
In a notification issued on 31st day of May 2021, the food ministry has allocated 22 LMT monthly sugar quota for June 2021 to 555 sugar mills which is 3.5 LMT higher than the quota allocated in June 2020. In the previous month the Govt. allocated 22 LMT monthly sugar quota to 555 mills. The allocated quota for June 2021 is 18.2% higher than that of June 2020.

According to market experts, the market may witness pressure due to the surge in Covid-19 cases that has led to extended lockdown restrictions in various states. Millers are likely to face selling pressure amidst the pre-monsoon rains in many states.

Market Scenario:
The demand has been quite poor throughout the month of May with the surge in Covid-19 cases and statewise imposed lockdowns in different parts of the country amidst summers. The Central Government however has been reluctant to call for a nationwide lockdown on apprehension of backlash on the economic growth. Sugar millers have already been facing the heat with selling pressure, stocks piled, unlifted sold stocks,growing interests etc, logistics has also taken a backseat hence not being able to liquidate funds. Market-men expect to witness some demand picking after state lockdowns are eased in the first week of June 2021. The industry is also eagerly awaiting some decision on the hike of Minimum Selling Price which is currently ₹3100/Quintal to improve the situation of stakeholders.
State wise Prices as on June, 01 2021 :
– Maharashtra:S/30 Sugar rates from millers are ₹3100 to ₹3120/Qntl. whereas M/30 ₹3125 to 3170.
In the resale market S/30 is trading at ₹3015 to ₹3040 whereas M/30 is trading at ₹3040 to ₹3110.
– Karnataka : S/30 Sugar rates from millers are ₹3180 to 3225 whereas M/30 is at ₹3275.
– Uttar Pradesh: The rates for M/30 are ₹3300 to 3315
– Gujarat: S/30 Sugar rates are ₹3141 whereas M/30 rates are at ₹3191 to 3201
– Tamil Nadu: S/30 Sugar rates are ₹3225 to 3300 whereas M/30 rates are at ₹3300 to 3350
(All the above rates are excluding GST)

International Market:
Market Overview:
Global sugar prices showed great volatility in May, after a strong increase in April. The initial rally in sugar futures contracts were driven by concerns about the persistent dry climate in the Center-South of Brazil, which is expected to affect the productivity of sugarcane fields in the 2021/22 harvest. Apparently, the appreciation of the real against the dollar has been a positive factor for sugar prices which removes the competitiveness of Brazilian sugar in the international market.

Yesterday’s Closing:
On Tuesday sugar prices closed higher on Brazilian crop concerns and a surge in crude oil prices. London white sugar closed at $464.90/ton with an appreciation of $5.30 whereas raw sugar on the New York Stock Exchange was noted at $17.69/lb with an appreciation of 0.33 points.

Market Today :
The market opened firm and witnessed some fresh buying.
At the time of writing this update sugar prices are in the green.
London White Sugar front month contract is trading at $467.80/tn whereas New York Sugar front month contract is trading at 17.72/lb

Indian export rates today:
In the Indian market, white sugar for the season 2020/21 icumsa 100 ready delivery for exports is trading at ₹28700 to ₹28900 on ex factory basis. Demand for Raw sugar of the season 2020/21 icumsa between 600-1200 is at ₹27700 to ₹27800 factory basis

Currency, Commodity & Indian Indices:
The rupee traded against the US dollar at 73.051 whereas USD was trading with BRL at 5.1555 Crude futures traded at Rs.5000, Crude WTI traded at $68.39 a barrel. Sensex closed 85.40 points lower at 51849.48 whereas Nifty ended 1.35 points higher at 15,576.20.

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