Sugar futures remained firm on Friday extending gains of the previous day on reports that talks between the cane growers and government failed in Maharashtra. However, late evening agitating farmers and government agreed on the first advance payment to cane growers in the current season.
Sugar mills from Kolhapur, Sangli and Satara would pay a first advance of `2,050 a tonne (last year they paid `2,000), while mills from underdeveloped Vidarbha, Marathwada and Khandesh would pay `1,800 a tonne ( `1,750). And, `1,850 a tonne is to be paid by mills in Pune, Ahmadnagar, Nashik and Solapur. (Source: Business standard) Further, reports that the Empowered Group of ministers may consider fresh Sugar exports on 16th or 17th November also supported the bullish market sentiments.
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 and ICE Raw Sugar futures settled 3.36% and 1.54% down respectively on lingering worries over Euro zone debt crisis. 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
Sugar mills from Kolhapur, Sangli and Satara would pay a first advance of `2,050 a tonne (last year they paid `2,000), while mills from underdeveloped Vidarbha, Marathwada and Khandesh would pay `1,800 a tonne ( `1,750). And, `1,850 a tonne is to be paid by mills in Pune, Ahmadnagar, Nashik and Solapur. (Source: Business standard) Further, reports that the Empowered Group of ministers may consider fresh Sugar exports on 16th or 17th November also supported the bullish market sentiments.
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 and ICE Raw Sugar futures settled 3.36% and 1.54% down respectively on lingering worries over Euro zone debt crisis. 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