Informist, Thursday, Nov 30, 2023
By Taniva Singha Roy
MUMBAI – Ex-mill prices of sugar fell in key markets of Uttar Pradesh today due to subdued demand as buying is generally low during December. In Maharashtra, prices were flat today due to lack of fresh triggers, traders said.
Mills in Uttar Pradesh reduced prices by 10–20 rupees per 100 kg as demand was low.
Prices are likely to follow a downward trend in the coming month and might increase when demand picks up in mid-January due to major festivals such as Makar Sankranti. The sales quota of 2.4 mln tn is also more than adequate for December, which will weigh on prices, Naresh Gupta, a local trader from north India said.
Prices in Maharashtara were stable today and there was not much movement in the market, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
When new sales start from Friday, prices are likely to see a downward trend as the sales quota for the month is much more than required, he added.
Additionally, he said that the sugar recovery rate is lower this year due to poor rainfall in August, which might lead to reduced sugar production.
However, the actual production estimates will only be released in January, which may lend cues to prices, Kuvadia said.
The following are the highlights of the sugar trade in the domestic market today:
-Flat at 3,740-3,815 rupees per 100 kg in Kolhapur
-Flat at 3,866-3,982 rupees per 100 kg in Mumbai
-Down by 10 to 20 rupees per 100 kg at 3,825-3,960 rupees per 100 kg in Muzaffarnagar
-Down by 10 to 15 rupees per 100 kg at 3,865-4,005 rupees per 100 kg in Kanpur
On the Intercontinental Exchange, the March sugar contract was at 26.62 cents a pound, down 1% from the previous close.
Sugar prices fell on alleviated concern over higher supply from Brazil in 2023-24. On Wednesday, Brazil’s government agency, CONAB, raised its 2023-24 Brazil sugar production estimate to 46.9 mln tn from an August estimate of 40.9 mln tn. End
US$1 = 83.39 rupees
Edited by Vidhi Verma
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