Wednesday, Oct 9
By Preeti Bhagat
NEW DELHI – Prices of medium-grade sugar fell for the fourth straight day in the wholesale markets of north India, as demand continued to be weak, traders said.
In Muzaffarnagar and Delhi, prices of sugar fell by 15-20 rupees per 100 kg.
“People are…not purchasing excess quantity despite festivals in the hope that prices will fall more slowly,” said Naresh Gupta, a Delhi-based trader.
“…if this is the situation of demand around Diwali, I don’t know what will happen to sugar prices,” said an Uttar Pradesh-based dealer.
Prices were, however, steady in Kolhapur and Mumbai as supply balanced demand.
Indian traders are likely to have signed deals to export 100,000-150,000 tn of sugar in the season that began on Oct 1, according to trade sources.
“Right now, Iran is the hot destination because they are buying due to quality discount on old sugar stocks (of 2018-19 season)…deals that have happened are for low-quality whites for immediate trade,” an official with a multinational trade house said.
At 1622 IST, the most active March contract of raw sugar on ICE Futures US was 0.3% higher at 12.5 cents per pound.
“The background fundamental outlook continues to (be) positive for Q4 (fourth quarter) 2019 and Q1 (first quarter) 2020 as deficit projections continue to increase,” Sucden Financial said in a report.
The deficit in the global sugar market in 2019-20 is seen at 6 mln tn, US Department of Agriculture’s Foreign Agricultural Services said in a report.
Following are today’s prices for medium-grade sugar in rupees per 100 kg, at key wholesale markets, and the change from the previous close:
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Charumathi Sankaran
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