ChiniMandi, Mumbai: Wednesday 27th May 2020
Domestic Market: The market took some pick in parts of Uttar Pradesh, rest nationwide the market has been steady.
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.3140 to Rs.3150/Qntl.
Gujarat: The rates for New S/30 are Rs.3160 to 3170 whereas M/30 are at 3210 to 3220/Qntl.
Tamil Nadu: S/30 Sugar rates are Rs.3260 to Rs.3350 whereas M/30 rates are Rs.3320 to 3400.
According to sources, sugar prices on settled higher owing to a rally in crude oil and strength in the Brazilian real. WTI crude climbed high, which benefits ethanol prices and may prompt Brazil’s sugar mills to divert more cane-crushing to ethanol production rather than sugar production, thus curbing sugar supplies.
Strength in the Brazilian real on Tuesday was also positive for sugar prices. The real rose to a 3-week high against the dollar, which discourages export selling by Brazil’s sugar producers.
Weak ethanol demand in Brazil is bearish for sugar prices as the coronavirus pandemic ravages the country’s economy. Unica reported Tuesday that Brazil total ethanol sales in the Center-South region fell -22% y/y to 1.055 bln liters the first half of May. 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.
London White Sugar front month contract is trading at $376.40/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 75.715 whereas USD traded with BRL at 5.3023, Crude futures traded at Rs.2573 Crude WTI traded at $33.86. Indices ended in the green, sensex closed 995.92 points higher at 31,605.22. Similarly, Nifty ended 285.90 points higher at 9,314.95.
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