Daily Sugar Market Update By Vizzie – 04/02/2020

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ChiniMandi, Mumbai: Tuesday 4th February 2020

Domestic: The market witnessed scanty demand nationwide.
Maharashtra: S/30 Sugar trades are taking place at Rs.3110 to Rs.3160/Qntl.
South Karnataka: S/30 trades are taking place at Rs.3250 to Rs. 3300 whereas M/30 trades are taking place at Rs.3300 to 3350.
Uttar Pradesh: The market trades for M/30 are taking place at Rs.3320 to Rs.3390.
Gujarat: S/30 Sugar is trading at Rs.3230 to Rs. 3270 whereas M/30 Sugar is trading at Rs.3300 to Rs.3350.
Kolkata: The trades for S/30 are taking place at Rs.3570 to Rs.3580 whereas M/30 trades are taking place at Rs.3600 to Rs.3630.
Tamil Nadu: S/30 Sugar is trading at Rs. 3330 to Rs.3400 whereas M/30 is trading at Rs.3390 to 3400
*All the domestic rates except Kolkata are excluding GST.

International Market: Though the prices have taken a jump, the demand in India hasn’t yet picked pace. Exporters are quite optimistic that the demand would take some pick.
White sugar of season 2018/19 icumsa 150 ready delivery is trading at Rs.23700 to Rs. 23800 on ex factory basis. Demand for white sugar of season 2019/20 icumsa below 100 is at Rs.24100 to Rs.24300 ex. factory basis. The FOB indication for white sugar icumsa 150 season 2018/19 is $372 to $374. For white sugar icumsa 100 Season 2019/20 the FOB indication is $380 to $382. London White Sugar front month contract is trading at $419.10/tn whereas US Sugar front month contract is trading at 15.06/lb at the time of writing this update.

According to sources, sugar prices pushed higher Monday with NY sugar at a new 2-yearhigh and London sugar at a fresh 2-1/2 year high on shrinking global sugar supplies. India’s Sugar Mills Association (ISMA) on Monday reported that sugar production in India, the world’s second-largest sugar producer, dropped sharply by -24% y/y to 14.1 MMT during Oct 1-Jan 31. Sugar supplies from the EU are also on the decline after the European Commission reported Monday that EU sugar exports during Oct 1-Jan 22 fell -62% y/y to a 3-year low of 291,000 MT. In a supportive factor for sugar, the Brazilian real on Monday rebounded higher by +0.77% from last Friday’s record low against the dollar. The upward rebound in the real discourages export selling by Brazil’s sugar producers. Sugar prices came off of their highs Monday after data from Brazil’s Trade Ministry showed Brazil Jan sugar exports jumped +48.5% y/y to 1.61 MMT. In another bearish factor for sugar prices, March WTI crude oil prices on Monday plunged -2.8% to a 1-year low. The sharp sell-off in crude oil prices undercuts ethanol prices and may prompt Brazil’s sugar mills to divert more cane crushing toward sugar production rather than ethanol production, thus boosting sugar supplies.

Currency, Commodity & Indian Indices: The rupee traded against the US dollar at 71.254 meanwhile USD traded with BRL at 4.2481, Crude Futures traded at Rs.3628, Crude WTI traded at $50.80. Indian Indices ended in the green today owing to positive global markets and a decline in oil prices. Sensex ended 917.07 points higher at 40,789.38. Similarly, Nifty ended 271.75 points higher at 11,979.65.

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