Sugar prices to trade lower today: Angel Commodities
According to Angel Commodities, Sugar Futures closed lower on Thursday tracking the spot demand. Market participants are expecting better summer demand from the industrial buyers as there is probability of lower production this season.
Angel Commodities' report on Sugar
Sugar Futures closed lower on Thursday tracking the spot demand. Market participants are expecting better summer demand from the industrial buyers as there is probability of lower production this season. Moreover, government is likely to revise down its estimate on sugar output in 2016 - 17 (Oct - S ep) from 22.5 mt forecast earlier due to shortage of cane in Maharashtra and Karnataka. Recently, ISMA lowered the production estimate by about 10 lakh tonnes (lt) for 2016/17. Moreover, Maharashtra’s cane crushing season of 2016 - 17 has come to an end. This is among the shorter seasons in Maharashtra after two consecutive droughts and has produced only 41.6 lakh tonne sugar so far compared to 83.75 lt of sugar as on 30th April 20 16. Raw sugar futures on ICE closed little higher traded in a narrow range and hovered above last week's three - month low for the third straight session. Prices were also supported by the strong real. Societe Generale in a report increased its estimate for a global 2016 - 17 sugar deficit to 3.8 mt from 2.4 mt and cut its global 2017 - 18 surplus forecast to 5 mt from 5.9 mt.Outlook
We expect sugar prices to trade lower sufficient supplies in the near term as sugar mills continue to sell sugar. However, due to lower production estimated this season and anticipation of higher sugar demand during summer the price may improve.
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