ChiniMandi, Mumbai:Tuesday 19th May 2020
Domestic: Market: The market witnessed steadiness in the market nationwide.
Maharashtra: S/30 Sugar rates are Rs.3080 to Rs.3125/Qntl.
South Karnataka: S/30 rates are Rs.3220 to Rs.3250 whereas M/30 rates are Rs.3300.
Uttar Pradesh: The rates for M/30 rates are Rs.3120 to Rs.3150/Qntl.
Gujarat: The rates for New S/30 are Rs.3140 to 3150 whereas M/30 are at 3180 to 3190/Qntl.
Tamil Nadu: S/30 Sugar rates are Rs.3265 to Rs.3350 whereas M/30 rates are Rs.3350 to 3375.
According to reports, sugar prices on Monday settled higher with NY sugar at a 1-1/2 week high. Monday’s +7% jump in crude oil prices to a 2-month high gave sugar prices a boost. Higher crude oil prices benefit ethanol prices and may prompt Brazil’s sugar mills to divert more cane crushing toward ethanol production rather than sugar production, thus curbing sugar supplies.
ugar prices also found support from reduced sugar production in India, the world’s second-largest sugar producer, after the Indian Sugar Mills Association (ISMA) reported on Monday that India Oct-May 15 sugar output fell -19% y/y to 26.47 MMT.
A sharp rally in the Brazilian real on Monday also provided support for sugar prices. The real rose +2.20% to a 1-1/2 week high against the dollar Monday, recovering somewhat from last Thursday’s record low of 5.970 reals/USD. Strength in the real is bullish for sugar since it discourages export selling by Brazil’s sugar producers.
London White Sugar front month contract is trading at $363.70/tn whereas US Sugar front month contract is trading at 10.81/lb at the time of writing this update.
Currency, Commodity & Indian Indices: The rupee traded against the US dollar at 75.633 whereas USD traded with BRL at 5.7198, Crude futures traded at Rs.2449 Crude WTI traded at $32.17. Indices ended in the red, sensex closed 167.19 points higher at 30,196.17. Similarly, Nifty ended 55.85 points higher at 8,879.10.
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