Daily Sugar Market Update By Vizzie – 20/03/2020

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ChiniMandi, Mumbai: Friday 20th March 2020
Domestic Market: The market witnessed scanty demand nationwide, sugar millers are struggling to sell their allocated sugar stocks.
Maharashtra: S/30 Sugar trades are taking place at Rs.3050 to Rs.3140/Qntl.
South Karnataka: S/30 trades are taking place at Rs.3250 to Rs. 3275 whereas M/30 is taking place at Rs.3270/Qntl.
Uttar Pradesh: The market trades for M/30 are taking place at Rs.3180 to Rs.3260/Qntl.
Gujarat: The market trades for M/30 are taking place at 3270 to 3290/Qntl.
Kolkata: The trades for S/30 are taking place at Rs.3470 to Rs.3480 whereas M/30 trades are taking place at Rs.3510 to Rs.3530/Qntl.
Tamil Nadu: S/30 Sugar is trading at Rs.3260 to Rs.3350 whereas M/30 trades are taking place at Rs.3325 to Rs.3340/Qntl.
*All the domestic rates except Kolkata are excluding GST

International Market: According to reports, Sugar prices on Thursday settled mixed with NY sugar falling to a 1-1/2 year low. Demand concerns are weighing on sugar prices after researcher Czarnikow on Tuesday cut its global sugar consumption estimate for this year by -2.0 MMT, citing a collapse in out-of-home food and drink consumption due to the closure of restaurants because of the coronavirus pandemic.

London sugar recovered from a 4-month low and settled higher after crude oil prices rebounded sharply on Thursday and rallied by 24%. Crude oil prices on Wednesday earlier plunged to an 18-year low, which is bearish for sugar. The plunge in crude oil prices is negative for ethanol prices and may prompt Brazil’s sugar mills to divert more cane crushing toward sugar production rather than ethanol production, thus boosting sugar supplies. Weakness in the Brazilian real against the dollar is negative for sugar prices. The real on Thursday consolidated mildly above Wednesday’s record low of 5.2523 reals/USD. The weaker real encourages export selling by Brazil’s sugar producers.

London White Sugar front month contract is trading at $345.60/tn whereas US Sugar front month contract is trading at 11.05/lb at the time of writing this update.

Currency, Commodity & Indian Indices:
The rupee traded against the US dollar at 75.133 whereas USD traded with BRL at 5.0960, Crude futures traded at Rs.2052, Crude WTI traded at $26.62. Indian Indices ended in the green, sensex closed 1627.73 points higher at 29,915.96 whereas Nifty ended 482 points higher at 8745.45.

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