Home Commodity Market News India Sugar:Flat across mkts; down on ICE as output in Brazil seen...

India Sugar:Flat across mkts; down on ICE as output in Brazil seen up

0
11

Informist, Friday, Dec 30, 2022

 

By Puja Das

 

NEW DELHI – Ex-mill prices of sugar were flat today in key markets across India amid limited supply, as most mills have exhausted their monthly sales quota, while poor demand for the commodity capped the upside, dealers said.

 

* Prices remained flat today as almost all mills have exhausted their December sales quota and did not consider raising prices without any selling pressure to meet the quota. Mills are waiting for the next month’s quota release, said Sharad Gupta, a Delhi-based dealer.

 

* “Predicting prices for the next month seems difficult as it depends on the January sales quota,” said Naresh Gupta, an Uttar Pradesh-based dealer. The government is likely to release the January sales quota by Friday or Saturday.

 

* Demand is unlikely to improve sharply in north India, as no major festivals are lined up in January, except Sankranti and Pongal, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.

 

* Prices may get support by 20-30 rupees per 100 kg gradually as cold drink and ice cream makers gear up to restart factories. It, however, depends on the monthly sales quota, the Delhi-based dealer said.

 

* “Demand is seen declining in Maharashtra and Gujarat as temperature in these states has started falling. This will weigh on prices in coming days,” Kuvadia said.

 

* The market is anticipating the January sales quota at 2.15-2.20 mln tn. If the quota is set at 2.15 mln tn, prices may go up by 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:

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

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

–Unchanged at 3,330-3,400 per 100 kg in Kolhapur

–Unchanged 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 0.3% at 20.24 cents per pound due to expectations of higher production in Brazil, the second-largest producer after India.

 

* Conab, Brazil’s national agricultural agency, hiked its Brazil 2022-23 sugar production estimate to 36.4 mln tn from an August estimate of 33.9 mln tn.

 

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

 

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to [email protected]

 

© Informist Media Pvt. Ltd. 2022. All rights reserved.

Source: Cogencis

NO COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here