Informist, Wednesday, Dec 6, 2023
By Taniva Singha Roy
MUMBAI – Ex-mill prices of sugar fell today in the key markets of Uttar Pradesh for the fifth consecutive day due to subdued demand, while in Maharashtara they were flat as demand and supply remained stable, said traders.
In Uttar Pradesh, prices fell by 20–30 rupees today per 100 kg due to low demand and a higher sales quota for December, said Naresh Gupta, a local trader from north India.
The downtrend in prices is likely to continue for a few more days and prices could fall further by about 15–20 rupees per 100 kg. At the moment, traders are not stocking up sugar due to a fall in prices, but in the next four to five days, when the pipeline of sugar stocks with the traders dries up, the rates will start increasing, Gupta said.
In Maharashtra, the prices remained unchanged as demand and supply were at par, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Prices are likely to remain on the lower side as the release quota for December is heavy compared to the demand for the sweetener for the month, he said.
The following are the highlights of the sugar trade in the domestic market today:
-Flat at 3,730-3,775 rupees per 100 kg in Kolhapur
-Flat at 3,866-3,966 rupees per 100 kg in Mumbai
-Down by 20 to 30 rupees per 100 kg at 3,775-3,890 rupees per 100 kg in Muzaffarnagar
-Down by 20 to 30 rupees per 100 kg at 3,775-3,900 rupees per 100 kg in Kanpur
On the Intercontinental Exchange, the March sugar contract was at 24.51 cents a pound, down 1.7% from the previous close.
Sugar prices fell on the Intercontinental Exchange, tracking a fall in crude oil prices. Sugarcane is used for the production of ethanol, which is used as a biodiesel mix.
Weaker crude oil prices undercut ethanol prices and discourage mills to divert sugarcane towards the production of ethanol, which increases the supply of the sweetener in the market. End
US$1 = 83.32 rupees
Edited by Maheswaran Parameswaran
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