Prices of mustard seed rose in the benchmark market of Jaipur because of a fall in arrivals, as well good demand for the seed by millers. Arrivals across the country were at 120,000 bags (1 bag = 85 kg), down from 140,000 bags. Demand for the commodity from consumers was good.
NCDEX soybean gains on lower acreage
Futures contracts in the edible oil basket traded higher on domestic exchanges. Soybean futures on NCDEX ended up, bolstered by a decline in acreage under the crop in the country. Soybean fell on the US exchange due to forecast of beneficial rains in the US. Dry weather conditions earlier posed threat to the standing soybean crop in the country, and rains may boost yield. Soyoil prices rose due to the ongoing strike at ports in Argentina.
Sugar Down in Maharashtra on subdued demand from bulk buyers
Prices of sugar fell in the key wholesale markets of Maharashtra due to sluggish demand from bulk buyers. Mills are quoting lower prices to trigger demand as crushing is expected to start earlier than usual in 2017-18 (Oct-Sep). Sugar mills in Maharashtra have, however, sought compensation of 500 rupees per tonne from the central government for the likely losses they would incur due to lower sugar recovery rate because of early crushing of sugarcane. However, Food Minister Ram Vilas Paswan on Aug 12 said that the government has no plans to allow further imports of sugar yet.
Global body ups 2017-18 sugar surplus estimate to 4.6 million tonne vs 3 million
International Sugar Organization has raised its estimate for global sugar surplus in 2017-18 (Oct-Sep) sharply to 4.6 million tonne from 3 million tonne projected in June. The world sugar balance is forecast to show a surplus after two seasons of deficit” as the projected global output of sugar is higher than the consumption. Global sugar body has estimated the world sugar output in 2017-18 at 179.30 million tonne, up nearly 7% on year, led by likely higher production in India, European Union, Thailand and China. Globally, sugar available for export is expected to rise by 1.91 million tonne to 62.15 million tonne led by rising production in exporting countries, while the import demand for the sweetener in 2017-18 is seen at 57.62 million tonne.
Sugar slump pressures Brazilian mills.
Decline in sugar and oil prices over the past six months has diminished the hope of financial recovery for a number of Brazilian mills, and could put new deal making in the sector on hold, according to industry experts. Raw sugar prices in New York were hovering around 13 cents per pound, down around 40 per cent since the fourth quarter of 2016, to a level analysts and millers say is close to production costs in Brazil centre-south. 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.