ChiniMandi, Mumbai: Friday 23rd April 2021
Domestic Market:
The market witnessed scanty demand with the state restrictions due to the surge of Covid-19 cases. According to marketmen logistics is also becoming a worrisome issue leaving liftings & deliveries delayed.
In Maharashtra: S/30 Sugar rates from millers are ₹3110 to ₹3140/Qntl. whereas M/30 ₹3220. In the resale market S/30 is trading at ₹3040 to ₹3080 whereas M/30 is trading at ₹3060 to ₹3120.
South Karnataka: S/30 rates are ₹3290 to 3400 whereas M/30 is ₹3370 to 3425
Uttar Pradesh: The rates for M/30 are ₹3450 to 3480
Gujarat: The rates new S/30 at ₹3191 whereas new M/30 ₹3261
Tamil Nadu: S/30 Sugar rates are ₹3290 to 3400 whereas M/30 rates are at ₹3370 to 3425.
(All the above rates are excluding GST)
International Market: On Thursday sugar prices fell back from new 2-month highs and posted modest losses. Sugar prices gave up an early advance and turned lower after crude oil prices fell to a 1-week low, which undercut ethanol prices and weighed on sugar. At the time of writing this update London White Sugar front month contract is trading at $462/tn, whereas New York Sugar front month contract is trading at 16.95/lb.
In the Indian market, white sugar of the season 2020/21 icumsa 100 ready delivery for exports is trading at ₹27500 on ex factory basis. Demand for Raw sugar of the season 2020/21 icumsa between 600- 1200 is at ₹27000 to ₹27100 factory basis.
Currency, Commodity & Indian Indices: The rupee traded against the US dollar at 74.933 whereas USD was trading with BRL at 5.5491 Crude futures traded at Rs.4630, Crude WTI traded at $61.62 a barrel. Sensex closed 202.22 points lower at 47,787.45 whereas Nifty ended 64.80 points lower at 14341.35.
A negative factor for sugar is concern that a record jump in weekly global Covid infections might prompt governments to tighten pandemic restrictions that curb economic growth and demand for commodities, including sugar. Also, the resurgence of the pandemic will keep pandemic restrictions in place that crimp fuel demand and encourage Brazil’s sugar mills to divert more cane crushing toward sugar production rather than ethanol production, thus boosting sugar supplies. Weekly new global Covid infections for the week ended April 19 rose +12% w/w to +5.2 million, the most since the pandemic began due mostly to surges in Brazil and India.
Sugar prices were undercut by news on April 1 that India’s sugar output in Oct-Apr 15 rose +17% y/y to 29.1 MMT from 24.83 MMT a year earlier due to a bumper crop and increased cane crushing. The India Sugar Trade Association on Feb 11 forecast that 2020/21 India sugar production will increase +9% y/y to 29.9 MMT.
Signs of abundant global sugar production are negative for prices. Unica reported last Tuesday that Brazil’s Center-South sugar production from Oct through Mar was up +43.7% y/y to 38.465 MMT. The percentage of cane used for sugar rose to 46.07% in 2020/21 from 34.33% in 2019/20. Also, researcher Datagro on March 10 projected that the global sugar market in 2021/22 would shift to a surplus of +1.1 MMT after a -2.6 MMT deficit in 2020/21.