Daily Sugar Market Update By Vizzie – 22/05/2020

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ChiniMandi, Mumbai: Friday 22nd May 2020
Domestic Market: Sugar millers have been striving hard to sell the allocated quota of May 2020, the market has been witnessing steadiness 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.3140/Qntl.
Gujarat: The rates for New S/30 are Rs.3135 to 3145 whereas M/30 are at 3175 to 3190/Qntl.
Tamil Nadu: S/30 Sugar rates are Rs.3270 to Rs.3350 whereas M/30 rates are Rs.3350 to 3375.

International Market:
According to reports, on Thursday sugar prices moved lower on concern about weak ethanol demand in Brazil as the coronavirus pandemic ravages the country’s economy. Brazil is the new hotspot for the coronavirus and trails only Russia and the U.S. in confirmed Covid-19 infections. Reduced ethanol demand will encourage Brazil’s mills to produce less ethanol and more sugar.

Earlier on Thursday, NY sugar and London sugar rallied to a 2-1/2 month high on strength in crude oil and the Brazilian real. Crude oil prices climbed to a 2-1/4 month high on Thursday. 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. Sugar is also underpinned by strength in the Brazilian real. The real on Thursday climbed +2.13% to a new 2-week high and recovered further 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 $362.70/tn whereas US Sugar front month contract is trading at 10.76/lb at the time of writing this update.

Currency, Commodity & Indian Indices: The rupee traded against the US dollar at 75.880 whereas USD traded with BRL at 5.5537, Crude futures traded at Rs.2456 Crude WTI traded at $32.34. Indices ended in the red, sensex closed 260.31 points lower at 30,672.59. Similarly, Nifty ended 67 points lower at 9,039.25.

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