ChiniMandi, Mumbai: Thursday 9th 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.3400 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.3580 whereas M/30 rates are Rs.3550 to 3600.
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 Wednesday settled mixed. NY sugar is consolidating just above last Wednesday’s 1-1/2 year low and London sugar is consolidating above Tuesday’s a 4-1/2 month low. Sugar prices continue to be undercut by concern about weaker sugar demand due to the coronavirus pandemic. Researcher Czarnikow on Mar 24 cut its global sugar consumption estimate for this year by -2.0 MMT, citing a collapse in out-of-home food and drink consumption due to the closure of restaurants because of the coronavirus pandemic.
A slump in Brazil ethanol prices is also weighing on sugar. Brazil ethanol prices tumbled to a 2-1/2 year low last Friday of 1.3049 reals/liter. The slump in ethanol prices may force Brazil’s sugar mills to divert more cane crushing toward sugar production rather than ethanol production, thus boosting sugar supplies. The recent plunge in crude oil prices to an 18-year low is another major bearish factor for sugar prices. 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.
Another negative for sugar is the persistent weakness in the Brazilian real against the dollar. The real last Friday dropped to a record low of 5.3225 reals/USD, although it did recover to a 1-week high on Wednesday. A weaker real is bearish for sugar since it encourages export selling by Brazil’s sugar producers.
London White Sugar front month contract is trading at $343.30/tn whereas US Sugar front month contract is trading at 10.37/lb at the time of writing this update.
Currency, Commodity & Indian Indices:
The rupee traded against the US dollar at 76.280 whereas USD traded with BRL at 5.0808, Crude futures traded at Rs.1958, Crude WTI traded at $24.20. Indices ended in the green, sensex closed 1265.66 points higher at 31,159.62. Similarly, Nifty ended 363.15 points higher at 9,111.90