Govt asks Uttar Pradesh to change sugarcane pricing policy.

The consumer affairs ministry has asked Uttar Pradesh government to change the pricing policy of sugarcane and implement the revenue-sharing model. Under the revenue-sharing formula, the total revenue generated from the cane-sugar value chain is shared between farmers and millers in the ratio of their relative costs in producing cane at the farm level and converting it into sugar and its by-products at the factory level. There is no link between cane and sugar prices under the current pricing policy followed by the state. For 2016-17 (Oct-Sep), price of cane in Uttar Pradesh, higher than fair and remunerative price, was raised by 25 rupees per 100 kg to 305 rupees. For 2017-18, government raised fair and remunerative price of cane to 255 rupees per 100 kg, linked to a basic recovery rate of 9.5%. For each 0.1% increase in recovery rate over and above 9.5%, the fair and remunerative price would be increased by 2.68 rupees per 100 kg. The fair and remunerative price of cane is the minimum price that sugarcane farmers across the country are guaranteed. It is fixed by the Centre, on the recommendations of the Commission for Agricultural Costs and Prices.

EU 2017-18 sugar output seen up 20% at 20.1 million tonne.

European Commission has forecast output of white sugar in the European Union at 20.1 million tonne for 2017-18, up 20% on year. While sugar imports are expected to halve to 1.5 million tonne due to a likely drop in prices of white sugar, European Commission sees sugar exports from the European bloc doubling to 2.8 million tonne in 2017-18.

India sugar prices up in key spot markets, down over 1% on NCDEX.

Prices of sugar rose in the key wholesale markets of north India as supplies were disrupted due to religious processions on some routes connecting western Uttar Pradesh to the national capital. Sugar prices also inched up in the key spot markets of Maharashtra as millers quoted higher prices. On the National Commodity and Derivatives Exchange, however, sugar futures were in the red due to expectations of higher sugar output in 2017-18 (Oct-Sep).

India sugar prices rise in north India due to supply disruptions.

Prices of sugar rose in the key wholesale markets of north India as supplies were disrupted due to religious processions on some routes connecting western Uttar Pradesh to the national capital. Prices of the sweetener were, however, largely unchanged in key wholesale markets of Maharashtra amid lacklustre trade. The outlook on sugar prices in the long term is bearish on expectations of higher output in 2017-18 (Oct-Sep).

Sugar prices down in Mumbai, up in Delhi.

Prices of sugar fell in key wholesale markets of Mumbai as mills reduced their prices to stoke demand. Likely higher output in 2017-18 (Oct-Sep), backed by good monsoon rains have been weighing on prices. In Mumbai, the sweetener sold down 5 rupees from previous close. In Delhi, however, prices rose as supplies were disrupted due to religious processions on some routes connecting western Uttar Pradesh to Delhi.

ISMA pegs 2017-18 sugar output at 25 million tonnes.

The Indian Sugar Mills Association has pegged the country sugar output in 2017-18 (Oct-Sep) at 25.1 million tonnes, up 23.6 per cent from 20.3 million tonnes produced in the previous year. The three-top sugar producing states Uttar Pradesh, Maharashtra and Karnataka are expected to produce over 19.8 million tonnes of total sugar output during the next season.

ICRA bullish on near-term sugar prices after import duty hike.

Prices of sugar in the domestic market are likely to rise in the near term as import duty on the commodity has been hiked. In the last week of June, prices of raw sugar on the Intercontinental Exchange had slipped to a 16-month low of 12.53 cents per pound. The country sugar production is estimated to have fallen to around 20.3 million tonne in 2016-17 (Oct-Sep), sharply down from 25.1 million tonne a year ago.

Twin slump in sugar, oil puts pressure back on Brazilian mills.

A steep decline in sugar and oil prices over the last six months has diminished the hope of financial recovery for a number of Brazilian mills, and could put new dealmaking in the sector on hold. Raw sugar prices in New York SBc1 were hovering around 13 cents per pound, down around 40 percent since the fourth quarter of 2016 to a level. At the same time, an ongoing slump in oil prices CLc1 LCOc1 has led state-controlled oil firm Petrobras (PETR4.SA) to repeatedly cut gasoline prices domestically. That has in turn pressured ethanol producers to follow suit since the two fuels were sold side by side at the pump. The price pressure on sugar and ethanol could cut short a nascent financial recovery for many Brazilian mills during a global sugar supply deficit in 2015 and 2016. It could also slow down talks between millers and potential investors and lead to more closures of indebted firms.

WASDE OUTLOOK SUGAR JULY:

U.S. deliveries for human consumption for 2016/17 are increased by 100,000 short tons, raw value (STRV) to 12.300 million based on pace-to-date through the end of May. Florida sugar production for 2016/17 is increased by 3,795 STRV to 2.055 million based on end-ofseason processor reporting to the USDA. Ending stocks are decreased by the sum of these adjustments to 1.440 million STRV, implying a stocks-to-use ratio of 11.4 percent. Imports for 2017/18 are increased by 225,445 STRV to 3.557 million. The increase is comprised of 176,370 STRV of additional specialty sugar that enters under the 2017/18 refined sugar tariffrate quota and an additional 49,075 STRV from Mexico. Deliveries for human consumption are projected to increase one-percent over the estimate for 2016/17 to 12.423 million STRV. Ending stocks for 2017/18 are projected at 1.132 million STRV, implying a stocks-to-use ratio of 9.0 percent. Mexico 2016/17 sugar imports intended for the IMMEX product re-export program are increased by 10,000 metric tons (MT) to 60,000 based on the pace to date. Sugar exports for 2016/17 to non-U.S. destinations are increased by 15,000 MT to 165,000 based on the pace to date. Exports to non-U.S. destinations for 2017/18 are decreased 15,000 MT to 10,000 based on expected higher-valued export alternatives to the U.S. market. Deliveries for the IMMEX program for 2017/18 are reduced 60,000 MT to 330,000. For 2017/18, exports to the United States are projected at 1.561 million MT. These exports are projected as the lower of the following: (1) anticipated U.S. Needs of 2.048 million MT as defined in the Suspension Agreements; or (2) the export level that yields an ending stocks-to-consumption ratio of 18.0 percent. The 18-percent stocks-to-consumption ratio is an assumed lower bound necessary for use until the new Mexico sugarcane harvest is well underway.

ISMA pegs 2017-18 sugar output at 25.1 million tonne, up 23.6% on year.

The Indian Sugar Mills Association has pegged the country sugar output in 2017-18 (Oct-Sep) at 25.1 million tonne, up 23.6% from 20.3 million tonne produced in the previous year. Uttar Pradesh, Maharashtra and Karnataka the three top sugar producing states are expected to produce over 19.8 million tonne of total sugar output during next season.

India Sugar prices down in key spot markets on low demand.

Prices of sugar fell in the key spot markets as mills lowered their prices to stir demand, owing to fading purchases at higher prices. Stockists have also replenished their stocks in the beginning of the month. Likely higher output in 2017-18 sugar season (Oct-Sep), backed by good monsoon rains has also weighed on the sentiments of sugar. In Delhi, sugar was down 10 rupees from previous close, while in Mumbai, the commodity was sold down 5 rupees. India sugar production is likely to rise 16-20% to around 23.5-24.5 million tonne in 2017-18 (Oct-Sep).

Global sugar prices still to bottom out as Brazil adds to glut.

Prices of raw sugar globally are in a free fall for the last three-four months and a further downside is expected by next month. Prices of raw sugar on Intercontinental Exchange fell to a 16-month low of 12.53 cents per pound in the last week of June. Though prices rebounded to 14-cents-per-pound mark earlier this week, the gains were short-lived. In the main centre-south growing region (of Brazil), the proportion of sugarcane that is turned into sugar is set to increase to 48%, following a figure of 46.3% in the last crop year. Prices of the sweetener may slip further mainly due to expectation of bumper global production in the next season.