Daily Sugar Market Update By Vizzie – 27/01/2020

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ChiniMandi, Mumbai: Monday 27th January 2020

Domestic: The market witnessed scanty demand nationwide.
Maharashtra: S/30 Sugar trades are taking place at Rs.3110 to Rs.3160/Qntl.
South Karnataka: S/30 trades are taking place at Rs.3200 to Rs. 3225 whereas M/30 trades are taking place at Rs.3210 to Rs.3275.
Uttar Pradesh: The market trades for M/30 are taking place at Rs.3275 to Rs.3410.
Gujarat: M/30 Sugar is trading at Rs.3280 to Rs.3300.
S-30 isn’t available for much trades due to major stocks traded for exports.
Kolkata: The trades for S/30 are taking place at Rs.3540 to Rs.3570 whereas M/30 trades are taking place at Rs.3600 to Rs.3630.
Tamil Nadu: S/30 Sugar is trading at Rs. 3265 to Rs.3380 whereas M/30 is trading at Rs.3325 to Rs.3375
*All the domestic rates except Kolkata are excluding GST.

International Market: Good demand was witnessed. White sugar of season 2018/19 icumsa 150 ready delivery traded at Rs.23300 to Rs. 23500 on ex factory basis. Demand for white sugar of season 2019/20 icumsa below 100 is at Rs.23600 to Rs.23800 ex. factory basis. The FOB indication for white sugar icumsa 150 season 2018/19 is $365 to $367. For white sugar icumsa 100 Season 2019/20 the FOB indication is $372 to $375.

Sugar prices retreated on Friday and posted 1-week lows on weakness in crude oil prices. Mar WTI crude fell -2.8% Friday to a 2-3/4 month low. Weaker crude prices undercut ethanol prices and may prompt Brazil’s sugar mills to divert more cane crushing to sugar production rather than ethanol production, this boosting sugar supplies. A rally in the dollar index on Friday to 1-1/2 month high also fueled long liquidation pressure in sugar futures. An extremely large net-long position held by funds makes the sugar market vulnerable to long liquidation pressure. London White Sugar front month contract is trading at $394.90/tn whereas US Sugar front month contract is trading at 14.14/lb at the time of writing this update.

Currency, Commodity & Indian Indices: The rupee traded against the US dollar at 71.482, meanwhile USD traded with BRL at 4.1817, Crude Futures traded at Rs.3753, Crude WTI traded at $52.43. Indian Indices ended in the red today. Sensex ended today at 458.07 points lower at 41,155.12. Similarly, Nifty ended 129.25 points lower at 12,119.00

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