Daily Sugar Market Update By Vizzie – 03/05/2021

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ChiniMandi, Mumbai: Monday 3rd May 2021
Domestic Market:
Overview: Since two weeks the market has been witnessing scanty demand due to the surge in Covid-19 cases, logistics has also been an issue. Market-men expect some improvements in demand and supply after the ease in lockdown restrictions.

According to ISMA, sugar mills across the country have produced 299.15 lac tons of sugar between 1st October 2020 and 30th April 2021. This is about 41 lac tons higher than 258.09 lac tons produced at the same time last year. However, as compared to 112 sugar mills which were crushing sugarcane on 30 th April 2020, 106 sugar mills are crushing sugarcane on 30th April 2021 this year.

– Maharashtra:
According to the Sugar Commissionerate, Maharashtra, the latest crushing reports exhibit sugar production of 105.83 LMT with an average recovery of 10.49%. 173 sugar mills out of 190 in the state have ended their crushing operations.
S/30 Sugar rates from millers are ₹3110 to ₹3140/Qntl. whereas M/30 ₹3220. In the resale market S/30 is trading at ₹3025 to ₹3060 whereas M/30 is trading at ₹3050 to ₹3120.
– Karnataka :
All the 66 operating sugar mills in Karnataka had already closed their crushing operations by the 1st week of April,2021 and had produced 41.67 lac tons of sugar. However, few mills might operate in the special season commencing July’ 2021. During the corresponding period last year, similar to this year, all the operating sugar mills had closed their operations and had produced 33.82 lac tons of sugar. However, in the special season last year, 1.12 lakh tons of sugar was made.
S/30 Sugar rates from millers are ₹3230 to 3275 whereas M/30 is at ₹3325.
– Uttar Pradesh:
U.P. sugar mills have produced 105.62 lac tons of sugar as on 30 th April 2021, which is 10.90 lac tons lower than the production of 116.52 lac tons achieved by them last year on the corresponding date. Out of 120 mills operated this year, 75 mills have ended their crushing and 45 mills continue their operations this year, compared to 75 mills which were operating on 30th April’ 2020 last year. It is learnt that most of the operating mills in the current season are expected to close by next fortnight, however, some of them may continue till end of May,2021.
The rates for M/30 are ₹3575 to 3580
– Gujarat:
Gujarat has produced 10.15 lac tons of sugar till 30th April 2021 with 5 sugar mills in operation. Last year, 9.02 lac tons of sugar had been produced with 1 mill in operation on 30th April 2021.
The rates for new S/30 at ₹3141 to 3161 whereas new M/30 ₹3211 to 3231
– Tamil Nadu:
Out of 27 sugar mills which operated this season, 9 sugar mills have ended their crushing so far, though some might operate in the special season later in the year. Till 30th April 2021, sugar production in the State was 6.04 lac tons, compared with 5.45 lac tons produced by 24 sugar mills on the corresponding date last year. Of the 24 sugar mills, a similar number of mills had ended their operations while 15 mills were in operation as on 30th April 2020, last year. In the special season last year, Tamil Nadu mills had made 2.0 lakh tons of sugar.
S/30 Sugar rates are ₹3275 to 3350 whereas M/30 rates are at ₹3350 to 3400.
(All the above rates are excluding GST)

International Market:
On Friday, sugar prices settled mixed. Long liquidation pressures emerged in sugar futures after Rabobank said that Brazil sugar harvest could result in a lower surplus in 2021/22, but the fact remains that global sugar stocks are bulky from previous surpluses.

At the time of writing this update London White Sugar front month contract is trading at $448.40/tn, whereas New York Sugar front month contract is trading at 17.12/lb

In the Indian market, white sugar of the season 2020/21 icumsa 100 ready delivery for exports is trading at ₹27700 on ex factory basis. Demand for Raw sugar of the season 2020/21 icumsa between 600- 1200 is at ₹27200 to ₹27300 factory basis.

Currency, Commodity & Indian Indices:
The rupee traded against the US dollar at 73.892 whereas USD was trading with BRL at5.4360 Crude futures traded at Rs.4708, Crude WTI traded at $63.41 a barrel. Sensex closed 63.84 points lower at 48718.52 whereas Nifty ended 3.05 points higher at 14,634.15.

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