Sugar futures remained firm on Wednesday extending gains of the previous day on reports that government may decide on the cane price in Maharashtra. UP government hiked cane price by 17% to Rs 240 per qtl on Tuesday November 08th 2011. Further, reports that the Empowered Group of ministers may consider fresh Sugar exports on 16th or 17th November also supported the bullish market sentiments.
UP government yesterday raised the SAP for sugarcane in season started October by Rs 35-40 per quintal to Rs 235-250 per qtl. Mills will now have to pay farmers at least Rs 240 per qtl for fair average cane, Rs 250 per quintal for early maturing varieties that have higher recovery and Rs 235 for late maturing cane, against Rs 205, Rs 210 and Rs 200 per qtl respectively during the last year.
31 mills in Maharashtra have started cane crushing for the current season, after a delay of almost a month on the back of extended rains and dispute over cane pricing. The dispute over purchase prices has nearly been resolved and the minimum price to be paid will likely be settled within a week.
Liffe White Sugar settled 0.40% down on lingering worries over Euro zone debt crisis while ICE Raw Sugar futures settled 0.12% higher yesterday on account of short coverings.
Brazil sugar exports down 17% Y-Y in October 2011. Brazil exported 2.55 million tonnes of sugar in the month of October 2011 on account of less cane and sugar output.
Domestic Sugar updates
Cane output in Maharashtra is expected to rise to 82.5 mn tn during 2011-12 from 80.3 mn tn last year, while sugar output is likely to increase about 2.5% to 9.3 mn tn.
Indian Sugarcane production is estimated higher by 0.9% at 342 mn tn for 2011-12 season starting October 1, 2011. ISMA has projected sugar production at 26 million tonnes for 2011-12.
With the opening stocks of 6 mn tn, domestic Sugar supplies are estimated at 32 mn tn against the domestic consumption of around 23 mn tn. Thus there is a wide scope for exports from India.
Global Sugar Updates
Brazil's main sugar industry group Unica showed production to fall at 30.8 million tonnes from 31.57 million tonnes. The crop will decline for the first time in 11 years due to bad weather during crop development and poor yields from aging cane fields have led Unica to cut its output forecasts. (12th October 2011).
China, the world's largest sugar consumer, has imported 1.6 million tons of sugar in the first 11 months of 2011, with preliminary data for the full year likely to be issued around October 10.
Courtesy: Angel Commodities
UP government yesterday raised the SAP for sugarcane in season started October by Rs 35-40 per quintal to Rs 235-250 per qtl. Mills will now have to pay farmers at least Rs 240 per qtl for fair average cane, Rs 250 per quintal for early maturing varieties that have higher recovery and Rs 235 for late maturing cane, against Rs 205, Rs 210 and Rs 200 per qtl respectively during the last year.
31 mills in Maharashtra have started cane crushing for the current season, after a delay of almost a month on the back of extended rains and dispute over cane pricing. The dispute over purchase prices has nearly been resolved and the minimum price to be paid will likely be settled within a week.
Liffe White Sugar settled 0.40% down on lingering worries over Euro zone debt crisis while ICE Raw Sugar futures settled 0.12% higher yesterday on account of short coverings.
Brazil sugar exports down 17% Y-Y in October 2011. Brazil exported 2.55 million tonnes of sugar in the month of October 2011 on account of less cane and sugar output.
Domestic Sugar updates
Cane output in Maharashtra is expected to rise to 82.5 mn tn during 2011-12 from 80.3 mn tn last year, while sugar output is likely to increase about 2.5% to 9.3 mn tn.
Indian Sugarcane production is estimated higher by 0.9% at 342 mn tn for 2011-12 season starting October 1, 2011. ISMA has projected sugar production at 26 million tonnes for 2011-12.
With the opening stocks of 6 mn tn, domestic Sugar supplies are estimated at 32 mn tn against the domestic consumption of around 23 mn tn. Thus there is a wide scope for exports from India.
Global Sugar Updates
Brazil's main sugar industry group Unica showed production to fall at 30.8 million tonnes from 31.57 million tonnes. The crop will decline for the first time in 11 years due to bad weather during crop development and poor yields from aging cane fields have led Unica to cut its output forecasts. (12th October 2011).
China, the world's largest sugar consumer, has imported 1.6 million tons of sugar in the first 11 months of 2011, with preliminary data for the full year likely to be issued around October 10.
Courtesy: Angel Commodities