ChiniMandi, Mumbai: Monday 18th May 2021
Overview: According to the latest reports by Indian Sugar Mills Association (ISMA) the country has produced 303.60 LMT of sugar and about 57 lac tons of contracts for export of sugar have already been entered into so far which translates to 95% of the total MAEQ quantity for sugar season 2020-21.
The domestic market has been witnessing “no demand” with the surge in Covid-19 cases and statewise imposed lockdowns in different parts of the country. The Central Government however has been reluctant to call for a nationwide lockdown on apprehension of backlash on the economic growth. Sugar millers have already been facing the heat with selling pressure, stocks piled, unlifted sold stocks,growing interests etc, logistics has also taken a backseat hence not being able to liquidate funds.
– Maharashtra: According to the Sugar Commissionerate, Maharashtra, the latest crushing reports exhibit sugar production of 106.21 LMT with an average recovery of 10.50%. 186 sugar mills out of 190 in the state have ended their crushing operations. Crushing in Maharashtra is likely to end by May 2021.
S/30 Sugar rates from millers are ₹3110 to ₹3140/Qntl. whereas M/30 ₹3220.
In the resale market S/30 is trading at ₹3025 to ₹3050 whereas M/30 is trading at ₹3050 to ₹3120.
– Karnataka : S/30 Sugar rates from millers are ₹3180 to 3225 whereas M/30 is at ₹3250.
– Uttar Pradesh: The rates for M/30 are ₹3225 to 3240
– Gujarat: The rates for new S/30 at ₹3101 to 3111 whereas new M/30 ₹3160 to 3180.
– Tamil Nadu: S/30 Sugar rates are ₹3225 to 3325 whereas M/30 rates are at ₹3300 to 3375.
(All the above rates are excluding GST)
On Monday sugar prices closed mixed with a rally in crude prices that elicits Brazilian sugar mills to divert more sugarcane towards production of ethanol instead of sugar production which ultimately reduces supply of sugar. Crude oil prices rose more than 1% with marginal gains on economic recovery in the US and Europe on the back of increasing rate of COVID-19 vaccinations.
London white sugar closed at $453.60/ton down by $0.60 whereas New York closed with an appreciation of 0.03 points to close at 16.99.lb.
At the time of writing this update sugar prices are in the green with an appreciation of more than 1%. London White Sugar front month contract is trading at $458.90/tn,whereas New York Sugar front month contract is trading at 17.82/lb
In the Indian market, white sugar of the season 2020/21 icumsa 100 ready delivery for exports is trading at ₹27700 to 27900 on ex factory basis. Demand for Raw sugar of the season 2020/21 icumsa between 600- 1200 is at ₹27200 to ₹27300 factory basis.
Currency, Commodity & Indian Indices:
The rupee traded against the US dollar at 73.006 whereas USD was trading with BRL at 5.2553 Crude futures traded at Rs.4862, Crude WTI traded at $66.59 a barrel. Sensex closed 612.60 points up at 50,193.33 whereas Nifty ended 184.95 points higher at 15,108.10.