Daily Sugar Market Update By Vizzie – 09/12/2020

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ChiniMandi, Mumbai: Wednesday 9th December 2020

Domestic Market:  The market witnessed poor demand. Sugar millers have been under selling pressure to improve their cash flows and due to the good crushing pace in major sugar producing states.

In Maharashtra: S/30 Sugar rates from millers are ₹3100 to ₹3140/Qntl whereas M/30 ₹3200 to 3240. In the resale market S/30 is trading at ₹3020 to ₹3100.
South Karnataka:  S/30 Sugar rates are ₹3150 to 3175 whereas, M/30 rates are ₹3325 to 3350.
Uttar Pradesh: The rates for M/30 are ₹3275  to 3300/Qntl.
Gujarat: The rates for M/30 are at ₹3151 to 3201/Qntl.
Tamil Nadu: S/30 Sugar rates are ₹3275 to 3350 whereas, M/30 rates are 3325 to 3350.
(All the above rates are excluding GST)

International Market: On Tuesday, sugar prices witnessed recovery from a 1-month low on strength in the Brazilian real. According to Paragon Global Markets, LLC, New York, USA, Today, the volume is only slightly better than yesterday. Commodity markets are getting a boost from the prospects of a possible stimulus plan in the US after the White House finally warmed up to the idea. Crude oil jumped after a rocket attack on northern Iraqi oil fields. More production comes from the south, so not a big impact. Gasoline stocks rose 6.44 million barrels according to the API report, the largest jump since April. That goes along with the news we saw of weak gasoline demand over the Thanksgiving holiday (worst since 1997) Dollar weaker as Poland and Hungary agree to the EU stimulus plan. So two supportive factors that could help push the market above 14.59, the downtrend line. We could see some light buy stops above, but unless we move above 14.91-15.00, we are still stuck in a range. Watching Brazil weather in Brazil and waiting to hear from Indonesia.”

London White Sugar front month contract is trading at $399.30/tn, whereas New York Sugar front month contract is trading at 14.53/lb.

Currency, Commodity & Indian Indices: The rupee traded against the US dollar at 73.657 whereas USD was trading with BRL at 5.1204 Crude futures traded at Rs.3374, Crude WTI traded at $45.73 a barrel. Sensex closed 494.99 points higher at 46,108.50 whereas Nifty ended 136.15 points higher at 13,529.10.

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