Daily Sugar Market Update By Vizzie – 16/04/2020

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ChiniMandi, Mumbai: Thursday, 16th April 2020
Domestic Market: Trades in larger quantities have not been taking place smoothly ever since the nationwide lockdown has been announced.
Maharashtra: S/30 Sugar rates are Rs.3050 to Rs.3140/Qntl.
South Karnataka: S/30 rates are Rs.3300 to 3350 whereas M/30 rates are Rs.3325 to 3400/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.3201 whereas M/30 are at 3280/Qntl.
Tamil Nadu: S/30 Sugar rates are Rs.3400 to Rs.3500 whereas M/30 rates are Rs.3450 to 3575.
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

International: According to reports, May NY world sugar #11 (SBK20) on Wednesday closed up +0.11 (+1.09%), and May London white sugar #5 (SWK20) closed down -2.50 (-0.72%). Sugar prices on Wednesday settled mixed. NY sugar recovered from a new 1-1/2 year low Wednesday and closed higher on a jump in sugar demand from Indonesia. Indonesia’s Central Statistics Agency on Wednesday reported Indonesia Q1 sugar imports rose +37% y/y to 1.35 MMT.

London sugar gave up an early rally Wednesday and closed lower as there were no reports of delivery problems with the expiring May London sugar futures contract. London sugar on Wednesday had earlier moved higher early on concern about the delivery of physical sugar for the May London white sugar contract that expired on Wednesday. The market was concerned about the origin of physical sugar deliveries with ports in India on lockdown from the coronavirus pandemic since most of the sugar to fulfill delivery obligations on the London white sugar contract usually comes from India.

NY sugar posted a new 1-1/2 year low Wednesday before recovering after crude oil prices fell to a new 18-year low. 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.

London White Sugar front month contract is trading at $335.10/tn whereas US Sugar front month contract is trading at 10.19/lb at the time of writing this update.

Currency, Commodity & Indian Indices:
The rupee traded against the US dollar at 76.824 whereas USD traded with BRL at 5.2359, Crude futures traded at Rs.1559, Crude WTI traded at $20.05 Indices ended in the green, sensex closed 222.80 points higher 30,602.61. Similarly, Nifty ended 67.50 points higher at 8992.80.

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