India Sugar:Up in north; ICE futures rise tracking gains in crude oil

Informist, Friday, May 5, 2023

By Afra Abubacker

MUMBAI – Ex-mill prices of sugar rose in the key wholesale markets of north India today, but were flat in Maharashtra, dealers said. 

Sugar prices rose today as demand picked up due to clear weather, said Naresh Gupta, an Uttar Pradesh-based dealer. Lack of selling pressure to meet the monthly sales quota as it is only the start of the month also aided prices. 

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

–Up 10–15 rupees at 3,515-35,570 rupees per 100 kg in Muzaffarnagar

–Up 10–15 rupees at 3,545-3,605 rupees per 100 kg in Delhi

–Flat at 3,525-3,545 rupees per 100 kg in Kolhapur

–Flat at 3,425-3,450 rupees per 100 kg in Mumbai

At 1537 IST, the most active July contract of raw sugar on the Intercontinental Exchange was up 0.5% at 25.65 cents per pound. Prices rose tracking a rise in crude oil contracts on the NYMEX.

A rise in crude oil prices prompts sugar mills in Brazil, the largest producer of sugarcane, to divert less cane towards the production of sugar and more towards ethanol.

Lower sugar production in India and prospects of an export ban by the government also supported prices. India is the second-largest producer of the commodity. 
 

However, higher estimates of sugar production in Brazil are likely to cap the rise in prices. According to a forecast by Conab on Apr 26, Brazil’s sugar output in 2023-24 is seen up 4.7% on year at 38.8 mln tn.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Aditya Sakorkar

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