ChiniMandi, Mumbai: 20th January 2022
Indian Market Updates
◾ Latest Update on Sugar Season 2021-22 by ISMA
According to the latest update by Indian Sugar Mills Association (ISMA) 504 sugar mills were in operation in the country as on 15th January 2022 and have produced 151.41 lac tons of. This is 8.63 lac tons higher as compared to last season’s production for the corresponding period.
Statewise Sugar Production
Domestic Trade Market
The market witnessed scanty demand.
State wise prices today:
◾ Maharashtra:S/30 Sugar rates from millers are ₹3140 to ₹3215/Qntl. whereas M/30 ₹3235 to 3315/Qntl.
◾ Karnataka : S/30 Sugar rates were ₹3240 to 3290/Qntl. whereas M/30 ₹3290 to 3340/Qntl.
◾ Uttar Pradesh: The rates for M/30 were at ₹3475 to 3510/Qntl.
◾ Gujarat: S/30 Sugar rates are ₹3231 to 3341/Qntl. whereas M/30 rates are at ₹3311 to 3441/Qntl.
◾ Tamil Nadu: S/30 Sugar rates are ₹3300 to 3500/Qntl. whereas M/30 rates are at ₹3450 to 3525/Qntl.
(All the above rates are excluding GST)
International Market Updates
◾ StoneX estimates world sugar balance deficit at 1.9 mmt
The global sugar production sugar balance deficit was revised, going from 1.8 million tonnes to 1.9 million tonnes, hence the deficit is reducing YoY from 3.0 mmt to 1.9 mmt. At the end of the 2021/22 cycle (OctSept), StoneX expects inventories to reach 72.4 million tonnes taking the stocks/use tattoo to 38.4%. In the coming months Indian exports seem to be viable with export parity at US 19.60/lb and sugar production more attractive than ethanol in the Brazilian market.
Bullish Factors 🔼
◾Deficit in the global sugar balance
◾Recovery of consumption in important importing players
◾Longer inter-crop period in Center-South Brazil
Bearish Factors 🔽
◾Positive Outlook for sugar production in Asian players
◾Possible higher risk aversion due to Covid-19 cases
◾Tendency for the Dollar to appreciate against other currencies and the Brazilian Real to weaken.
International Trade Market
Yesterday sugar futures contracts closed higher on international exchanges. London white sugar #5 (SWH22) closed up $1.10 at $510.10/ton whereas US sugar #11 (SBH22) closed up 0.41 points at 19.07 c/lb.
The London White Sugar front month contract is trading at $511.70/ton, whereas the New York Sugar front month contract is trading at 19.10/lb.
Currency, Commodity & Indian Indices:
The rupee traded against the US dollar at 74.406, whereas USD was trading with BRL at 5.4102, Crude futures traded at Rs.6367, Crude WTI traded at $85.48 barrel. Sensex closed 634.20 points lower at 59,464.62 whereas Nifty ended 181.40 points lower at 17,757.