ChiniMandi, Mumbai: Wednesday 3rd March, 2021
The market witnessed good demand. According to market sources the demand has been witnessed with the increase of temperatures in various states. A rally of Rs.15 to Rs.30 was witnessed since late evening yesterday.
In Maharashtra: S/30 Sugar rates from millers are ₹3100 to ₹3130/Qntl. whereas M/30 ₹3150 to 3200. In the resale market S/30 is trading at ₹3030 to ₹3065 whereas M/30 is trading at ₹3075 to ₹3150.
South Karnataka: S/30 rates are ₹3160 to 3195. M/30 rates are ₹3170 to 3250.
Uttar Pradesh: The rates for M/30 are ₹3170 to 3210
In Gujarat: The rates for old S/30 and ₹M/30 3101 to 3111 and new S/30 are prevailing at ₹3121 new M/30 ₹3121 to 3141
Tamil Nadu: S/30 Sugar rates are ₹3220 to 3270 whereas, M/30 rates are 3295
(All the above rates are excluding GST)
On Tuesday, sugar prices recovered from early losses and settled with moderate gains. A weakness in the Brazilian real was a negative factor for sugar prices. The real fell -0.78% and posted a 3-3/4 month low against the dollar. Concern about smaller global sugar supplies has also fueled recent fund buying of sugar futures. Last week Brazil reported that current shipping delays for its soybean exports might curb global sugar supplies because the queue of vessels waiting at Brazilian ports is so large that bottlenecks will likely continue until May when sugar is normally the biggest crop for export. The recent forecast by the European Commission that EU 2021/22 sugar production will fall -12% y/y to 15.4 MMT and strength in crude oil prices has been supportive for sugar prices. Sugar has also gained support from falling production in Thailand, after the Thailand Office of the Cane & Sugar Board reported on 16th February 2021 that Thailand’s 2020/21 sugar production during Dec 10-Feb 12 fell -23% y/y to 5.5 MMT. Signs of smaller sugar exports from India has also added to another positive factor for sugar prices. The Indian Sugar Mills Association (ISMA) on 18th February 2021 said that India’s sugar mills have only contracted 2.5 MMT of sugar exports this year, below the government’s export target of 6 MMT on a shortage of shipping containers.
At the time of writing this update London White Sugar front month contract is trading at $464.20/tn, whereas New York Sugar front month contract is trading at 16.35/lb.
In the Indian market, white sugar of the season 2020/21 icumsa 100 ready delivery for exports is trading at ₹26850 to ₹27000 on ex factory basis. Demand for Raw sugar of the season 2020/21 icumsa between 600- 1200 is at ₹26850 to ₹27000 factory basis.
Currency, Commodity & Indian Indices:
The rupee traded against the US dollar at 73.350 whereas USD was trading with BRL at 5.6764 Crude futures traded at Rs.4450, Crude WTI traded at $60.87 a barrel. Sensex closed 1147.76 points higher at 51,444.65 whereas Nifty ended 326.50 points higher at 15,245.60.
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