ChiniMandi, Mumbai:Monday 28th April 2020
Domestic Market: The demand has been quite poor nationwide.
Maharashtra: S/30 Sugar rates are Rs.3040 to Rs.3100/Qntl.
South Karnataka: S/30 rates are Rs.3275 to 3285 whereas M/30 rates are Rs.3325.
Uttar Pradesh: The rates for M/30 rates are Rs.3100 to Rs.3130/Qntl.
Gujarat: The rates for New S/30 are Rs.3160 whereas M/30 are at 3210 to 3230/Qntl.
Tamil Nadu: S/30 Sugar rates are Rs.3300 to Rs.3400 whereas M/30 rates are Rs.3350 to 3425.
International: According to reports, sugar prices on Monday sold off sharply with NY sugar at a new contract low and Aug London sugar at a 7-1/2 month low. The nearest-futures May NY sugar contract tumbled to a 12-1/2 year nearest-futures low.
A sell-off in crude prices Monday, along with weakness in the Brazilian real, weighed on sugar prices. Jun WTI crude fell more than 20% on Monday and sparked fund-selling in sugar futures. Weaker crude oil prices undercut ethanol prices and may prompt Brazil’s sugar mills to divert more cane crushing toward sugar production and away from ethanol production, thus boosting sugar supplies.
Weakness in the Brazilian real against the dollar is another major bearish factor for sugar prices. The real on Monday fell -1.99% against the dollar and is just above last Friday’s record low of 5.7456 reals/USD. A weaker real is bearish for sugar since it encourages export selling by Brazil’s sugar producers.
London White Sugar front month contract is trading at $305.50/tn whereas US Sugar front month contract is trading at 9.09/lb at the time of writing this update.
Currency, Commodity & Indian Indices:
The rupee traded against the US dollar at 76.145 whereas USD traded with BRL at 5.6543, Crude futures traded at Rs.896, Crude WTI traded at $11.46. Indices ended in the green, Sensex closed 371.44 points higher at 32,114.52. Similarly, Nifty ended 98.60 points higher at 9,380.90.
