WASDE OUTLOOK SUGAR JULY:
Ram Gopal Yadav (8 years ago)

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.
Ram Gopal Yadav (8 years ago)

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.
Ram Gopal Yadav (8 years ago)

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.
Ram Gopal Yadav (8 years ago)

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.

Govt OKs fumigation of pulses from Canada, France, US at India ports.
Ram Gopal Yadav (8 years ago)

The government has exempted pulses imported from Canada, France, and the US from mandatory fumigation at port of origin. These countries have been allowed to fumigate pulses cargoes at Indian ports by paying only the fumigation fee. The relaxations have been granted to these countries in view of India bilateral relations with them. The exemption paves the way for continued pulses imports from these countries. For all other commodities, imported from other countries, the importers have to pay a high penalty in case fumigation is not done at the port of origin. The penalty is five times the inspection fee for the first default, seven times the inspection fee on second default and 10 times the fee on the third instance of default, or not meeting any conditions laid down under the plant quarantine norms. For subsequent defaults, the penalty increases exponentially. Traders have also been seeking a reduction in the inspection fee charged by the phytosanitary authority, as their cost on imports has increased by $2-3 a tonne due to the fee hike.

NCDEX to relaunch chana trade Fri, shifts delivery centre to Bikaner.
Ram Gopal Yadav (8 years ago)

The National Commodity and Derivatives Exchange is set to relaunch futures trade in chana on Friday, after the Securities and Exchange Board of India gave its approval in this regard. According to the new contract, Bikaner in Rajasthan would be the main delivery centre, as opposed to Delhi in the previous contract.

Chana prices down in Delhi on higher supplies.
Ram Gopal Yadav (8 years ago)

Prices of chana were down in Delhi because of increase in supplies amid sluggish buying from the dal millers. Chana was quoted lower in the key markets despite reports of re-launch of the pulse on the NCDEX. Although arrivals are unchanged, they have been higher over the last three-four days compared to beginning of the month, which is seen creating bearish sentiment.