ChiniMandi, Mumbai:Wednesday 13th May 2020
Domestic Market: The market has been steady nationwide.
Maharashtra: S/30 Sugar rates are Rs.3080 to Rs.3100/Qntl.
South Karnataka: S/30 rates are Rs.3200 to Rs.3250 whereas M/30 rates are Rs.3300.
Uttar Pradesh: The rates for M/30 rates are Rs.3100 to Rs.3125/Qntl.
Gujarat: The rates for New S/30 are Rs.3130 to 3140 whereas M/30 are at 3330 to 3375/Qntl.
Tamil Nadu: S/30 Sugar rates are Rs.3265 to Rs.3380 whereas M/30 rates are Rs.3350 to 3375.
According to reports, sugar prices on Tuesday recovered from early losses with NY sugar rebounding from a 1-week low on strength in crude oil prices. Crude oil prices rallied more than +6% on Tuesday, which benefits ethanol prices and reduces the relative incentive for Brazil’s mills to produce sugar versus ethanol.
Sugar prices on Tuesday fell back from their highs after the Brazilian real erased an early rally and fell -0.86% against the dollar. The real is just above last Thursday’s new record low of 5.8744 reals/USD. The weakness in the real is bearish for sugar since it encourages export selling by Brazil’s sugar producers.
Sugar prices initially opened lower Tuesday morning with NY sugar at a 1-week low after Unica reported that Brazil Center-South sugar production in the second half of April surged +93% y/y to 2.016 MT, with the percentage of cane used for sugar climbing to 45.76% in 2020/21 from 30.87% in 2019/20. Unica on Tuesday also reported that Brazil’s sugarcane-based ethanol sales in April tumbled -32 y/y to 1.78 bln liters.
London White Sugar front month contract is trading at $344.80/tn whereas US Sugar front month contract is trading at 10.21/lb at the time of writing this update.
Currency, Commodity & Indian Indices: The rupee traded against the US dollar at 75.281 whereas USD traded with BRL at 5.8466, Crude futures traded at Rs.1940, Crude WTI traded at $25.69. Indices ended in the green, sensex closed 637.49 points higher at 32,008.61. Similarly, Nifty ended 187 points higher at 9,383.55
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