Tuesday, 24 July 2012

Sugar surges on poor monsoon in South Asia, lower arrivals from Brazil

24 July, 2012
MUMBAI (Commodity Online):
Poor monsoon in South Asian region, especially in India, and delayed shipments from Brazil has raised the price of sugar in the global market.

In India, though sugar production for 2011-12 has touched record heights of 26 million tons and consumption is estimated at 22 million tons, sugar in domestic market surged to a record heights on Monday, 23rd July to Rs 3600 per qtl.

According to reports, the price gain was on the back of high demand from the Indian exporters as the availability of sugar from Brazil has dropped drastically due to heavy rains, which has raised the demand for Indian Sweetener in the global market.

In Brazil, due to rains, wait for ships arriving to load sugar at the main Brazilian port of Santos to 15 days as the ports lack covered loaders to keep rain out of ships' holds and wait days may increase as the more rains are expected towards the week end.

The sugar prices in India is also supported by the ongoing festival season.

In India's National Commodity and Derivatives Exchange (NCDEX), during the month of July till date (23rd July), sugar for August delivery has surged 10.92% to Rs 3314 per qtl.

In Inter-Continental Exchange(ICE), sugar for October delivery traded at 23.89 cents per bushels and in NCDEX, the commodity for August delivery traded at Rs 3329 per qtl on 24th July at 11:00 IST.

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