Sugar News Details

India Sugar- Rises across mkts as high temperatures push up demand


NEW DELHI – Prices of medium-grade sugar rose in all key wholesale markets across the country today because of robust demand from soft drink and ice-cream manufacturers amid soaring temperatures, and as mills refrained from offloading higher stocks for sale in the market, traders said.
 In Mumbai and Kolhapur, prices rose by 10 rupees per 100 kg each, while in Delhi and Muzaffarnagar, prices were up by 40 rupees and 15 rupees, respectively.
 "As prices are rising continuously for the past few days, sugar mills are trying to release lesser stocks for sale so that prices rise more and more," said an official with the Muzaffarnagar-based Saurabh Sugar Traders.
 Supplies are seen higher this season as well as the next, which will keep prices in check in the long term. Despite expectations of a decline in sugar production in 2019-20 (Oct-Sep), a surplus of more than 17 mln tn is expected in the domestic market due to record production of 33 mln tn in 2018-19.
 On ICE Futures US, the most active July contract of raw sugar was at 11.77 cents per pound, up 0.4% from the previous close.
 Mills in Brazil's Centre-South region produced 1.04 mln tn of sugar during the second fortnight of April, down 32.7% from 1.54 mln tn produced a year ago, the country's sugarcane industry association, known by its Portuguese acronym UNICA, said in a report. This is also supporting prices.
 There are expectations of lower production of the sweetener in 2019-20 (Apr-Mar) as more cane will be diverted towards ethanol. Of the total cane crushed so far this season, only 30.83% was used for sugar production, while the rest was used to make ethanol, UNICA said.