NEW DELHI – After rising for three consecutive days, ex-mill prices of medium-grade sugar were flat across India today because of lack of fresh cues in the market, dealers said.
"Sales were good in the last three days… Rajasthan, Gujarat, Odisha, Haryana and Punjab came forward to buy sugar but there is not much movement today," said Vijay Kapoor, owner of Muzaffarnagar-based Anshika Sugars.
Going ahead, mills expect an improvement in off-take as more restrictions will be eased this month after the third phase of the nationwide lockdown gets over on Sunday.
Overseas demand for the sweetener is also picking up. So far in May, mills in India have signed deals to export 390,000 tn raw and white sugar, UK-based trader Czarnikow said in a note.
"Halfway through May, it's apparent that the flow is continuing and also picking up for white sugar exports too. Indonesia has nominated more Indian white sugar than all other regions combined at this point," Czarnikow said.
On the local front, the cane department of Uttar Pradesh has issued guidelines to sugar mills on how to prevent sugarcane crop from pyrilla perpusilla pest, whose outbreak is negligible. At places where the outbreak is more widespread, mills have been asked to contact Sugarcane Research Council immediately.
Farmers have also been advised to keep their cane fields clean by immediately irrigating and weeding areas affected by the pyrilla pest.
The most-active July contract of raw sugar on the benchmark Intercontinental Exchange Futures US was up 2.4% at 10.51 cents per pound today.
"The line up in Brazilian ports is large and any logistical delay can create short term tightness, given the heavy reliance on Brazilian sugar this could further spread strength nearby. Speculators remain short and technically the market looks to have room on the upside," London-based broker Marex Spectron said in a note.
Following are today's ex-mill prices of medium-grade sugar in rupees per 100 kg, at key wholesale markets, and the change from the previous close:
US$1 = 75.56 rupees