ChiniMandi, Mumbai: Tuesday 7th April 2020
Domestic Market: With the lockdown nationwide, trades in larger quantities aren’t taking place smoothly.
Maharashtra: S/30 Sugar rates are Rs.3050 to Rs.3140/Qntl.
South Karnataka: S/30 rates are Rs.3370 to 3450 whereas M/30 rates are Rs.3420 to 3500/Qntl.
Uttar Pradesh: The rates for M/30 rates are Rs.3180 to Rs.3260/Qntl.
Gujarat: The rates for New S/30 are Rs.3241 whereas M/30 are at 3321 to 3431/Qntl.
Tamil Nadu: S/30 Sugar rates are Rs.3500 to Rs.3600 whereas M/30 rates are Rs.3550 to 3650.
Kolkata: The rates for S/30 are Rs.3560 to Rs.3570 whereas M/30 rates are at Rs.3600/Qntl.
*All the domestic rates except Kolkata are excluding GST
According to reports, Sugar prices on Monday settled mixed with London sugar at a 4-1/2 month low. A -7% slump in crude oil prices on Monday weighed on ethanol and sugar prices. Crude oil retreated Monday on uncertainty about whether there will be a price-war truce between Russia and Saudi Arabia. Monday’s scheduled OPEC+ video conference was tentatively rescheduled until Thursday. Russia and Saudi Arabia want the U.S. to join in the conference, although President Trump has yet to say if the U.S. will join in talks or join a production cut. Weaker crude oil prices undercut 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.
Sugar prices received a boost from Monday’s sharp +1.3% rally in the Brazilian real on signs that the Brazil Central Bank (BCB) may be close to intervening in the currency markets in support of the real. Central Bank of Brazil President Neto warned on Monday that the central bank will keep an eye out for any kind of dysfunctionality in the market that would require central bank currency market intervention. Persistent weakness in the Brazilian real against the dollar has recently been a major bearish factor for sugar prices with the real last Friday falling to a new record low of 5.3225 reals/USD. A weaker real encourages export selling by Brazil’s sugar producers.
London White Sugar front month contract is trading at $330.80/tn whereas US Sugar front month contract is trading at 10.46/lb at the time of writing this update.
Currency, Commodity & Indian Indices:
The rupee traded against the US dollar at 75.574 whereas USD traded with BRL at 5.2089, Crude futures traded at Rs.2065, Crude WTI traded at $26.25. Indices ended in the green, sensex closed 2476 points higher at 30,067.21. Similarly, Nifty ended 708.40 points higher at 8,792.20.