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Tuesday, January 31, 2023

India Sugar: Rises in north as mills begin selling from Jan quota

Informist, Wednesday, Dec 28, 2022


By Puja Das


NEW DELHI – Ex-mill prices of sugar rose further in the key markets of north India as most mills have exhausted their sales quota for December and have started selling the sweetener from the next month’s quota, dealers said.


* “Demand in north India is likely to gather pace from next week ahead of Sankranti, Pongal and the beginning of the wedding season,” Uttar-Pradesh based trader Naresh Gupta said.


* “Market sentiment is also seen improving as actual production figures of the sweetener will start coming out from mid-January,” Gupta 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, it will depend on the next month’s sales quota, which is likely to be released by Friday or Saturday, Kuvadia said.


* The market is anticipating the January sales quota to be around 2.15-2.20 mln tn. If the January sales quota is set at 2.15 mln tn, prices may go up 20-30 rupees per 100 kg, but if it is set at 2.20 mln tn, prices are expected to remain flat or may move up or down by 5-10 rupees per 100 kg, Kuvadia said.


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

–Up 10 rupees at 3,430-3,510 rupees per 100 kg in Muzaffarnagar

–Up 10 rupees at 3,495-3,555 rupees per 100 kg in Delhi

–Down 30 rupees at 3,330-3,400 per 100 kg in Kolhapur

–Down 10 rupees at 3,486-3,616 rupees per 100 kg in Mumbai


* On the Intercontinental Exchange, the most-active March contract of raw sugar was down 1% at 20.13 cents per pound as a technical correction was witnessed in the sugar market after the contract hit a six-year high of 21.18 cents recently.


* Brazil’s government on Tuesday raised its estimates for the country’s sugar and ethanol production for the 2022-23 season. This also weighed on prices of the soft commodity. Brazil is the second-largest producer of sugar after India.


* In contrast, Brazil is likely to extend a federal taxes exemption for fuels over January as the new administration takes over and evaluates long-term outlook for fuel prices. End


Edited by Tanima Banerjee



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Source: Cogencis

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