| Date: |
27-05-2015 |
| Subject: |
Sugar futures may trade sideways: Angel |
|
Sugar prices traded almost flat due to subdued demand against ample supply. The summer season demand and subsidy announced by top-producing Maharashtra state helping to sustain price. Recently, government increased import duty to 40% from earlier 25% to curb cheap imports.
As per Indian Sugar Mills Association (ISMA), India produced 278.5 lakh tonnes (lt) of sugar till mid May, about 16 per cent higher compared with 24 million tonne same time last season. The production this year is the highest since 2006-07 when it was 28.4 million tonne. Mills have exported only 4.6 lakh tonne of sugar (both raw and refined) until the first week of May as per ISMA.
Global Sugar Updates
According to USDA, global production to be down by 900,000 tons to 173.4 million tons which is 3rd consecution yearly decline while the consumptions will equal production for first time. Global imports are predicted to increase by 3 per cent due to sizable increase in imports for China, US and EU. Ending stock for 2015/16 is forecasted at 40.53 million tons, lowest in 4 years. China’s production is projected down 180,000 tons to 10.8 while Brazil’s production is up slightly at 36.0 million tons.
Outlook
Sugar futures may trade sideways due to lack of fresh export orders and weak international market may continue to keep prices under downside pressure. However, decision on sugar buffer stock may support the prices.
Source : moneycontrol.com
|