Informist, Wednesday, May 4, 2022
By Puja Das
NEW DELHI – Ex-mill prices of sugar were lower in key wholesale markets across north India today because of limited demand at higher price levels, dealers said.
* Selling pressure on mills has risen as the government has set the monthly sales limit of sugar at 2.25 mln tn for May, up from 2.20 mln tn set in April. Demand from buyers at the upper level, on the other hand, remains weak, said Naresh Gupta, a Delhi-based dealer.
* Even though prices have increased sharply during the last few days, they are seen falling for a week from today onwards, Gupta said. Overall, prices are expected to remain in the current range. However, if demand improves from mid-May, prices may go up by 20-30 rupees per 100 kg from the present level, he added.
* Prices were flat in key markets of Maharashtra due to lack of fresh triggers, said Mukesh Kuvadia, secretary, Bombay Sugar Merchants Association.
* Demand may improve from next week, Kuvadia added.
* Following are the highlights of sugar trade in the domestic market:
(Changes in price per 100 kg)
–Down 5-10 rupees at 3,550 rupees in Muzaffarnagar
–Down 5-10 rupees at 3,540 rupees in Delhi
–Flat at 3,405 rupees in Kolhapur
–Flat at 3,702 rupees in Mumbai
* On the Intercontinental Exchange, the most-active July contract of raw sugar was up 1.6% at 18.91 cents per pound, as sugarcane crushing in Brazil, the top producer, declined sharply.
* Sugar prices are expected to hover around 19.60 cents in the Jul-Sep quarter compared with 19.30 cents in Apr-Jun due to a dented sentiment amid Russian energy export disruptions, global fertiliser shortages and tensions associated with the forthcoming Brazilian election, Rabobank said in a note on website brecorder.com. End
Edited by Tanima Banerjee
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