India Sugar: Unch in Mumbai on demand-supply parity; falls on ICE

Informist, Tuesday, Dec 13, 2022

By Puja Das

NEW DELHI – Ex-mill prices of sugar declined further in the key markets of north India and Kolhapur today, except Mumbai, because of sluggish demand amid excess supply, traders said.

* Mills have lowered the price of the sweetener further as wedding demand has weakened. Prices may fall further in Uttar Pradesh by 10-30 rupees per 100 kg and by 40-50 rupees in Delhi this month, they said.

* Despite Christmas, prices may not move up during the last week of this month. However, it depends on demand and selling pressure on mills, Uttar Pradesh-based dealer Naresh Gupta said.

* In Maharashtra, prices are likely to remain flat or move slightly downwards despite improved demand from bakers and cake makers, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.

* Supply has increased gradually as sugarcane crushing is in full-swing, Kuvadia said.

Following are the highlights of sugar trade in the domestic market:

–Down 10-15 rupees per 100 kg at 3,460-3,540 rupees per 100 kg in Muzaffarnagar

–Down 15 rupees per 100 kg at 3,500-3,540 rupees per 100 kg in Delhi

–Down 10-20 rupees per 100 kg at 3,360-3,410 rupees per 100 kg in Kolhapur

–Unchanged at 3,536-3,636 rupees per 100 kg in Mumbai

* On the Intercontinental Exchange, the most-active March contract of raw sugar was down 0.2% at 19.34 cents per pound in anticipation of higher sugar output in Brazil, the second-largest producer.

* Brazil’s sugar production in 2022-23 is seen rising 2.8% on year at 32.9 mln tn, said Brazil’s sugarcane industry association UNICA.

* The lower price trend, however, was limited by the European Union’s lower sugar output report.

* The European Association of Sugar Manufacturers Thursday forecasted that the European Union will likely produce 15.5 mln tn of sugar in 2022-23 marketing year, down 7% on year.  End

Edited by Aditya Sakorkar

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Source: Cogencis