Daily Sugar Market Update By Vizzie -27/02/2020

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ChiniMandi, Mumbai: Thursday 27th February 2020

Domestic Market: The market continued to witness scanty demand nationwide, few mills in South Maharashtra are still struggling to sell the quota allocated to them for the month of February.
Maharashtra: S/30 Sugar trades are taking place at Rs.3100 to Rs.3150/Qntl.
South Karnataka: S/30 trades are taking place at Rs.3225 to Rs. 3235 whereas M/30 trades are taking place at Rs.3235 to 3385.
Uttar Pradesh: The market trades for M/30 are taking place at Rs.3310 to Rs.3350.
Gujarat: M/30 trades are taking place at Rs.3180 to 3220.
Kolkata: The trades for S/30 are taking place at Rs.3540 to Rs.3560 whereas M/30 trades are taking place at Rs.3600 to Rs.3610.
Tamil Nadu: S/30 Sugar is trading at Rs.3250 to Rs.3340 whereas M/30 is trading at Rs.3300 to 3375.
*All the domestic rates except Kolkata are excluding GST

International Market: No major movement was witnessed in the market. White sugar of season 2018/19 icumsa 150 ready delivery is trading at Rs.23900 to Rs. 24000 on ex factory basis. Demand for white sugar of season 2019/20 icumsa below 100 is at Rs.24200 to Rs.24300 ex. factory basis. The FOB indication for white sugar icumsa 150 season 2018/19 is $375 to $376. For white sugar icumsa 100 Season 2019/20 the FOB indication is $382 to $384.

According to sources, sugar prices retreated Wednesday with NY sugar at a 2-1/2 week low and London sugar at a 3-week low. Weakness in crude prices undercut sugar prices Wednesday after crude oil slumped to a 13-1/2 month low. Lower crude prices are 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.

Another negative for sugar prices was the weakness in the Brazilian real, which sank -1.27% Wednesday against the dollar to a new record low of 4.4464 reals/USD. A weaker real encourages export selling by Brazil’s sugar producers.

London White Sugar front month contract is trading at $397.90/tn whereas US Sugar front month contract is trading at 14.48/lb at the time of writing this update.

Currency, Commodity & Indian Indices: The rupee traded against the US dollar at 71.627 whereas USD traded with BRL at 4.4600, Crude futures traded at Rs.3401, Crude WTI traded at $47.26.
Indian Indices ended in the red. Sensex closed 143.30 points lower at 39,745.66 whereas Nifty ended 45.20 points lower at 11,633.30

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