Sugar prices to trade sideways: Angel Commodities
Angel Commodities’ report on Sugar
Sugar Futures closed lower last week on expectation of good production next year and good domestic supplies. India’s sugar production is set to rebound from a seven – year low as above – normal monsoon rain in the world’s largest consumer helps the cane crop that will be crushed from Oct. 1. According to government data, sugarcane acreage in the country was at 47. 5 lakh ha, higher than 44.8 lakh ha a year ago. Recently government hiked Sugar import duty to 50 per cent to support domestic prices. ICE Raw sugar futures settled higher due to strong Real. Moreover, contract has been boosted by worries about tighter nearby deliverable supplies. Biweekly cane industry data from Brazil showed millers in the country’s center – south region increased sugar output in the second half of June.
Sugar futures may trade sideways on sufficient supplies in the domestic market Production is expected to be higher by 25% in 2017/18. Increase in FRP is encouraging farmers to take sugarcane crop while good sowing progress in the country will keep pressure on the sugar prices.
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