Informist, Wednesday, May 24, 2023
By Sayantan Sarkar
MUMBAI – Ex-mill prices of sugar in key markets of north India rose today due to lower-level buying as prices had fallen on Monday amid a rise in supplies, said a trader.
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.
Today, in north India, prices of the sweetener climbed by 10–15 rupees per 100 kg as there were some lower-level purchases, said Naresh Gupta, a north India-based sugar trader.
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:
–Up 10–15 rupees at 3,590-3,650 rupees per 100 kg in Muzaffarnagar
–Up 10–15 rupees at 3,620-3,725 rupees per 100 kg in central Uttar Pradesh
At 1856 IST, the July futures contract of sugar on the Intercontinental Exchange was down 0.7% at 25.62 cents per pound. Sugar prices fell due to a stronger dollar, which made the commodity more expensive for holders of other currencies, and thereby limiting demand for the sweetener.
Also, a surge in fresh COVID-19 cases in China dampened the demand outlook from the world’s second-largest economy.
However, sugar prices are likely to be supported by changing weather patterns that could hit global production. On May 11, the US Climate Prediction Centre raised the likelihood of an El Nino weather pattern emerging between August and October to 94% from the 74% forecast in April. If that El Nino pattern occurs, it could bring heavy rains to Brazil and drought to India, negatively impacting sugar crop production, Barchart.com said in a report.
End
US$1 = 82.66 rupees
Edited by Maheswaran Parameswaran
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