Informist, Tuesday, May 23, 2023
By Sayantan Sarkar
MUMBAI – Ex-mill prices of sugar were steady in key markets of north India and Maharashtra today due to lack of cues, traders said.
Sugar prices have been in a narrow range for the past few sessions as both demand and supply remained balanced. On Monday, prices in key spot markets had fallen slightly due to a rise in supply as some mills released more sugar to meet monthly sales quota.
India is the world’s second-largest producer of sugar, behind Brazil. Sugar prices are closely monitored by the government as it is one of the key ingredients in the Indian diet and, hence, is a politically sensitive commodity.
Following are the highlights of sugar trade in the domestic market today:
–Flat at 3,545-3,615 rupees per 100 kg in Muzaffarnagar
–Flat at 3,475-3,525 rupees per 100 kg in Kolhapur
–Flat at 3,625-3,717 rupees per 100 kg in Mumbai
At 1927 IST, the July futures contract of sugar on the Intercontinental Exchange was up 0.2% at 26.04 cents per pound.
The International Sugar Organization in its quarterly monthly report released today, scaled down its estimate for global surplus of the sweetener in 2022-23 (Oct-Sep) by 3.3 mln tn to 852,000 tn. Prices got support as the organisation slashed its estimate for global surplus this year.
The organisation said it estimates global sugar production in 2022-23 at 177.365 mln tn, down 7.928 mln tn from its estimate in February. It has scaled up the global consumption estimate to 176.513 mln tn from 176.280 mln tn in February.
It has also scaled down the global export availability of sugar estimate for 2022-23 by 65,000 tn to 63.9 mln tn.
“Lower crop estimates and export prospects in Thailand and India contributed to a bullish market sentiment, but it is the slowing of Brazilian exports in recent months that is potentially a more pronounced fundamental driver for the price rally,” it said.
However, with nearly 47% of Brazil’s exports in 2022-23 still to be realised from May to September, prospects of the modest 2022-23 surplus weighing on prices are yet to be proven, according to the report. End
US$1 = 82.79 rupees
Edited by Maheswaran Parameswaran
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