Daily Sugar Market Update By Vizzie – 13/07/2020

ChiniMandi, Mumbai: Monday 13th July 2020
Domestic Market: The market witnessed moderate demand nationwide.
Maharashtra: S/30 Sugar rates from millers are ₹3210 to ₹3250/Qntl whereas M/30 ₹3310 to 3350
South Karnataka: The rates for S/30 are ₹3360 to ₹3400 and M/30 are ₹3450.
Uttar Pradesh: The rates for M/30 are ₹3325/Qntl.
Gujarat: The rates for New S/30 are ₹3301 whereas M/30 are at ₹3331/Qntl.
Tamil Nadu: S/30 Sugar rates are ₹3400 to 3480 whereas, M/30 rates are ₹3450 to 3500
(All the above rates are excluding GST)

International Market: According to reports, on Friday Sugar prices moved lower with NY sugar at a 1-1/2 week low and London sugar at a 6-week low on ample supplies and suspect demand. Sugar supplies are abundant after UNICA reported that Brazil’s Center-South sugar production in the second half of June rose +23.3% y/y to 2.728 MMT, with the percentage of cane used for sugar climbing to 47.42% in 2020/21 from 37.06% in 2019/20. On the positive side, Unica also reported that total exports of ethanol by Brazil Center-South mills in June rose +44% y/y to 267 mln liters, which indicates pressure for less sugar production and more ethanol production. The overall sugar demand picture is bearish for sugar prices. Losses in sugar were limited Friday on a +2% rally in crude prices. Higher crude oil prices are positive for ethanol prices and may prompt Brazil’s sugar mills to divert more cane crushing to ethanol production rather than sugar production, thus curbing sugar supplies.

London White Sugar front month contract is trading at $342.90/tn, whereas US Sugar front month contract is trading at 11.69/lb at the time of writing this update.

Currency, Commodity & Indian Indices: The rupee traded against the US dollar at 75.191 whereas USD traded with BRL at 5.3567, Crude futures traded at Rs.3021, Crude WTI traded at $40.12. Indices ended in the green, sensex closed 99.36 points higher at 36,693.69. Similarly, Nifty ended 34.65 points higher at 10,802.70.

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