ChiniMandi, Mumbai: Friday 27th March 2020
Domestic Market: With the lockdown nationwide, trades in larger quantities aren’t taking place smoothly.
Maharashtra: S/30 Sugar rates are Rs.3050 to Rs.3140/Qntl.
South Karnataka: S/30 rates are Rs.3250 to Rs. 3275 whereas M/30 rates are Rs.3270/Qntl.
Uttar Pradesh: The rates for M/30 rates are Rs.3180 to Rs.3260/Qntl.
Gujarat: The rates for S/30 are Rs.3560 whereas M/30 are at 3570 to 3650/Qntl.
Kolkata: The rates for S/30 are Rs.3470 to Rs.3480 whereas M/30 trades rates are Rs.3510 to Rs.3530/Qntl.
Tamil Nadu: S/30 Sugar rates are Rs.3260 to Rs.3350 whereas M/30 rates are Rs.3325 to Rs.3340/Qntl.
*All the domestic rates except Kolkata are excluding GST
According to reports, Sugar prices on Thursday settled mixed with London sugar at a 1-1/2 week high and NY sugar modestly below Wednesday’s 1-1/2 week high on concern about supply disruptions. In India, several ports and terminals have declared force majeure due to shutdowns from the coronavirus pandemic. The Indian Sugar Mills Association (ISMA) on Wednesday said that India’s cane crushing may be affected during the 3-week long lockdown imposed by the Indian government to slow the spread of the coronavirus.
Sugar prices also found support Thursday on the outlook for reduced sugar production in India after the Indian government asked sugar mills and distilleries to ramp up production of hand sanitizers to combat the spread of the coronavirus pandemic.
A -6% plunge in WTI crude oil on Thursday undercut sugar prices. The recent plunge in crude oil prices to an 18-year low last Wednesday has been 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.
London White Sugar front month contract is trading at $355.10/tn whereas US Sugar front month contract is trading at 11.24/lb at the time of writing this update.
Currency, Commodity & Indian Indices:
The rupee traded against the US dollar at 75.480 whereas USD traded with BRL at 5.0896, Crude futures traded at Rs.1727, Crude WTI traded at $21.71. Sensex closed 131.18 points lower at 29,815.59. Similarly, Nifty ended 18.80 points up at 8,660.25.