ChiniMandi, Mumbai: Thursday 29th April 2021
Overview: The market has been relatively quiet nationwide compared to yesterday. The market sentiments have been weak with scanty demand due to the lockdown restrictions and surge in covid-19 cases which has brought down demand. Logistics has also been a worrisome issue at many locations. Overall, there is selling pressure held amongst millers and marketmen.
According to the Sugar Commissionerate, Maharashtra, the latest crushing reports exhibit sugar production of 105.55 LMT with an average recovery of 10.49%. 167 sugar mills out of 190 in the state have ended their crushing operations.
S/30 Sugar rates from millers are ₹3110 to ₹3140/Qntl. whereas M/30 ₹3220. In the resale market S/30 is trading at ₹3025 to ₹3060 whereas M/30 is trading at ₹3050 to ₹3120.
South Karnataka: S/30 rates are ₹3250 whereas M/30 is ₹3300
Uttar Pradesh: The rates for M/30 are ₹3440 to 3470
Gujarat: The rates new S/30 at ₹3151 to 3171 whereas new M/30 ₹3221 to 3241
Tamil Nadu: S/30 Sugar rates are ₹3250 to 3380 whereas M/30 rates are at ₹3375 to 3400.
(All the above rates are excluding GST)
On Wednesday sugar prices closed lower and consolidated below Tuesday’s high. Aug London white sugar #5 (SWQ21) closed at $480.40 per ton, down $17.70 compared to the previous day, whereas May New York world sugar #11 (SBK21) closed at 17.30/lb down 64 points.
Traders told Reuters analysts that the market appeared to be overbought after the recent hike, adding that weakening contracts at the start of the session triggered some automatic sales orders, with investors making profits. Also according to Reuters, Commerzbank said that the improvement in offers from the European Union, India and Thailand this season should leave the market in a balanced position, although the persistent drought conditions in Brazil are increasingly worrying. The main driver of the recent rally has been the lesser output of Brazil for 2021/22.
At the time of writing this update London White Sugar front month contract is trading at $470.10/tn, whereas New York Sugar front month contract is trading at 17.41/lb
In the Indian market, white sugar of the season 2020/21 icumsa 100 ready delivery for exports is trading at ₹27700 on ex factory basis. Demand for Raw sugar of the season 2020/21 icumsa between 600- 1200 is at ₹27200 to ₹27300 factory basis.
Currency, Commodity & Indian Indices:
The rupee traded against the US dollar at 74.046 whereas USD was trading with BRL at 5.3515 Crude futures traded at Rs.4842, Crude WTI traded at $65.31 a barrel. Sensex closed 32.10 points higher at 49,765.94 whereas Nifty ended 30.35 points higher at 14,894.90.
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