Informist, Monday, Dec 26, 2022
By Puja Das
NEW DELHI – Ex-mill prices of sugar fell further today in key markets of north India due to sluggish demand and rising selling pressure, traders said.
* Mills are selling heavily to meet their monthly sales quota for December. Some mills in west Uttar Pradesh have reduced prices further as demand hasn’t picked up pace. The overall trend is weak and is likely to remain so until the month-end, said local trader Naresh Gupta.
* Predicting prices is difficult as they have already fallen by 130-140 rupees since the beginning of the month, Gupta said.
* Movement in domestic prices will depend on the sales quota for January, which is likely to be announced on Friday or Saturday, analysts said.
* “Demand is seen declining as temperature in Maharashtra and Gujarat has started falling. This will weigh on prices in coming days,” said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
* However, prices in Maharashtra may get support from January, Kuvadia said.
* “In north India, prices are seen going up by 25-30 rupees from the first week of January as demand is likely to improve ahead of Sankranti, Pongal and the beginning of the wedding season,” Gupta said.
Following are the highlights of sugar trade in the domestic market:
–Down 10-15 rupees at 3,400-3,480 rupees per 100 kg in Muzaffarnagar
–Down 10 rupees at 3,465-3,535 rupees per 100 kg in Delhi
–Down 5-10 rupees at 3,360-3,400 per 100 kg in Kolhapur
–Down 5-10 rupees at 3,585-3,622 rupees per 100 kg in Mumbai
* On the Intercontinental Exchange, the most-active March contract of raw sugar was up 0.5% at 21 cents per pound as supply is seen tight in the short term.
* Delays in sugarcane harvesting in Thailand, Australia and Central America have tightened supplies, while rainfall in Brazil is likely to weigh on global production next season.
* Spot traders are concerned about global sugar output, while derivatives traders are buying.
* Mills in Brazil have produced nearly 360,000 tn of sugar in the first half of December, according to a survey by S&P. Brazil’s sugarcane industry association UNICA is likely to release data this week. End
Edited by Ashish Shirke
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