ChiniMandi, Mumbai: Wednesday 11th March 2020
Domestic Market: The market witnessed moderate demand.
Maharashtra: S/30 Sugar trades are taking place at Rs.3070 to Rs.3140/Qntl.
South Karnataka: S/30 trades are taking place at Rs.3190 to Rs. 3215 whereas M/30 is taking place at Rs.3220/Qntl.
Uttar Pradesh: The market trades for M/30 are taking place at Rs.3190 to Rs.3240/Qntl.
Gujarat: S/30 is trading at Rs.3160 to 3170 whereas M/30 trades are taking place at 3250 to 3270/Qntl.
Kolkata: The trades for S/30 are taking place at Rs.3450 to Rs.3470 whereas M/30 trades are taking place at Rs.3470 to Rs.3480/Qntl.
Tamil Nadu: S/30 Sugar is trading at Rs.3225 to Rs.3300 whereas M/30 trades are taking place at Rs.3275 to Rs.3350/Qntl.
*All the domestic rates except Kolkata are excluding GST
International Market: The market did not witness any major movement.
White sugar of the season 2018/19 icumsa 150 ready delivery is trading at Rs.23000 to Rs. 23200 on ex factory basis. Demand for white sugar of season 2019/20 icumsa below 100 is at Rs.23200 to Rs.23300 ex. factory basis. The FOB indication for white sugar icumsa 150 season 2018/19 is $350 to $352. For white sugar icumsa 100 Season 2019/20 the FOB indication is $358 to $360.
According to sources, sugar prices on Tuesday settled higher due to a recovery in crude oil and the Brazilian real. NY sugar on Tuesday recovered somewhat from Monday’s 4-1/2 month low and London sugar recovered from Monday’s 3-month low, which were posted on Monday’s plunge in crude prices and weakness in the Brazilian real. Crude oil prices on Tuesday rallied more than 8%, which is supportive for ethanol prices and may prompt Brazil’s sugar mills to divert more cane crushing toward ethanol, thus reducing sugar supplies. The Brazilian real on Tuesday rose by +1.52% against the dollar, which sparked some short-covering in sugar futures since a stronger real discourages export selling by Brazil’s sugar producers. The real on Monday sank to a record low of 4.791 reals/USD. A negative for sugar prices was the projection from sugar-producer Raizen on Tuesday that the slump in crude prices to a 4-year low will prompt Brazil’s sugar mills this year to divert more cane crushing toward sugar production rather than ethanol production, which may boost Brazil 2020/21 sugar output by 6 MMT.
London White Sugar front month contract is trading at $359.60/tn whereas US Sugar front month contract is trading at 12.48/lb at the time of writing this update.
Currency, Commodity & Indian Indices:
The rupee traded against the US dollar at 73.608 whereas USD traded with BRL at 4.6439, Crude futures traded at Rs.2483, Crude WTI traded at $33.45. Indian Indices ended in the green. Sensex closed 62.45 points higher at 35,697.40 whereas Nifty ended 6.95 points higher at 10,458.40.
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