Daily Sugar Market Update By Vizzie -04/03/2020

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ChiniMandi, Mumbai: Wednesday 4th March 2020
Domestic Market: The market witnessed scanty demand nationwide.
Maharashtra: S/30 Sugar trades are taking place at Rs.3070 to Rs.3145/Qntl.
South Karnataka: S/30 trades are taking place at Rs.3200 to Rs. 3275 whereas M-30 is taking place at Rs.3230.
Uttar Pradesh: The market trades for M/30 are taking place at Rs.3190 to Rs.3230.
Gujarat: S/30 is trading at Rs.3150 whereas M/30 trades are taking place at 3240-3250.
Kolkata: The trades for S/30 are taking place at Rs.3480 to Rs.3490 whereas M/30 trades are taking place at Rs.3550 to Rs.3570.
Tamil Nadu: S/30 Sugar is trading at Rs.3280 to Rs.3380 whereas M/30 trades are taking place at Rs.3350 to Rs.3375.
*All the domestic rates except Kolkata are excluding GST

International Market: No major movement was witnessed in the market. White sugar of season 2018/19 icumsa 150 ready delivery is trading at Rs.23900 to Rs. 24000 on ex factory basis. Demand for white sugar of season 2019/20 icumsa below 100 is at Rs.24200 to Rs.24300 ex. factory basis. The FOB indication for white sugar icumsa 150 season 2018/19 is $375 to $376. For white sugar icumsa 100 Season 2019/20 the FOB indication is $382 to $384.

According to sources, on Tuesday sugar prices extended their week-long slide as NY sugar dropped to a 1-3/4 month low and as London sugar fell to a 1-1/2 month low. Global demand concerns are weighing on sugar prices after Monday’s news that eight sugar traders delivered sugar against expiring March NY sugar futures contracts, the fourth-largest March delivery in data going back to 1989 and a sign of weak global demand. Another bearish factor for sugar was an increase in global supply after Brazil’s Trade Ministry on Monday reported that Brazil’s Feb sugar exports rose +12.4% y/y to 1.309 MMT. Weakness in the Brazilian real was again bearish for sugar prices. The Brazilian real on Tuesday sank -0.84% to a record low against the dollar of 4.5166 reals/USD. A weaker real encourages export selling by Brazil’s sugar producers. An extremely large net-long position held by funds makes the sugar futures markets vulnerable to long liquidation pressure.

London White Sugar front month contract is trading at $386.90/tn whereas US Sugar front month contract is trading at 13.865/lb at the time of writing this update.

Currency, Commodity & Indian Indices: The rupee traded against the US dollar at 73.220 whereas USD traded with BRL at 4.5148, Crude futures traded at Rs.3509, Crude WTI traded at $47.64.
Indian Indices rose and ended in the red. Sensex closed 214.22 points higher at 38,409.48 whereas Nifty ended 170.55 points higher at 11,251.00.

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