Informist, Wednesday, Jan 11, 2023
By Puja Das
NEW DELHI – Ex-mill prices of sugar fell in key markets of north India today as mills lowered prices amid rising selling pressure. Prices were flat in the markets of Maharashtra, dealers said.
* “In north India, some mills reduced prices as demand was good at the current rate,” said Naresh Gupta, an Uttar Pradesh-based trader.
* Subdued demand amid prevailing cold waves may pull down prices further in north India. However, demand may rise from the next week on account of Makar Sankranti and beginning of the wedding season, which will restrict the downside in prices, Gupta said.
“Demand is not so poor not so firm, but it may improve in the coming days for Makar Sankranti and as the wedding season begins after Jan 15,” said Naresh Gupta, an Uttar Pradesh-based trader. This may push up prices slightly, he said.
* However, prices are unlikely to improve in Maharashtra as demand is seen to be affected amid cold weather conditions in parts of Maharashtra, Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association, said.
Following are the highlights of sugar trade in the domestic market:
–Down 10-15 rupees at 3,360-3,430 rupees per 100 kg in Muzaffarnagar
–Down 10-15 rupees at 3,430-3,470 rupees per 100 kg in Delhi
–Flat at 3,280-3,395 rupees per 100 kg in Kolhapur
–Flat at 3,452-3,612 rupees per 100 kg in Mumbai
* On the Intercontinental Exchange, the most-active March contract of raw sugar was up 1.6% at 19.96 cents per pound, tracking gains on crude oil contracts on the NYMEX.
* Higher crude prices benefit ethanol prices and prompt sugar mills across Brazil to divert more cane towards ethanol production rather than sugar, curbing sugar supplies.
* Last week, the India Sugar Mills Association reported that India’s sugar production for 2022-23 season during Oct-Dec rose 3.7% on year to 12.1 mln tn. This weighed on prices of the soft commodity. India is the world’s second-largest sugar exporter.
* Brazilian government agency Conab on Dec 27 raised its Brazil 2022-23 sugar production estimate to 36.4 mln tn from an August estimate of 33.9 mln tn. End
Edited by Vidhi Verma
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