Yesterday’s closing dated –06/12/2023
◾London White Sugar – 643.60s (-47.90)
◾NYBOT Raw Sugar #11 – 23.00s (-1.96)
◾USD/BRL- 4.9026 (+0.0004)
◾USD/INR – 83.3250 (-0.0575)
◾Brent Crude – 74.30 (-2.90)
◾BSE Sensex – 69,653.73 (+357.59)
◾NIFTY50 – 20,937.70 (+82.60)
Sugar prices Wednesday plummeted to a 5-month low as an easing of sugar supply concerns has fueled fund selling of sugar futures. Sugar prices have sold off sharply over the past week after Conab last Wednesday raised its 2023/24 Brazil sugar production estimate by +15% to 46.9 MMT from an August estimate of 40.9 MMT.
Speaking about Indian market, as per report, to ensure enough sugar production, India plans to discourage using sugar for making ethanol. This is to ensure there’s an adequate supply of sugar in the local market. The government might tell mills not to use sugarcane juice and B-heavy molasses for making ethanol. It would only allow mills to use C-heavy molasses for ethanol production. After evaluating the demand-supply scenario, the committee of ministers chose to prioritise sugar production for the current ethanol supply year. The new guidelines for ESY 2023-24, starting from November 1, will be decided soon.
