- Global raw Sugar prices surged higher on supply concern from Brazil.
- Dryness in CS Brazil is supporting the prices in global market. Rains over cane regions are at 10-year low.
- Raw sugar futures were up by 41 cents to 17.52 c/lb and White Sugar was up by $11 per MT to $460.8 per MT.
- White premium ended the two weeks losing streak on higher White Sugars.
- As on 5th May, White premium (July/Aug) is reported at USD 74.3 per MT as compared to USD 72.4 per MT of previous session.
- The spread is likely to widen on easing lockdowns on mass vaccination drive across the globe.
Indian Export Parity:
- Indian raws and LQW’s continued to remain competitive at the global market on surge in global prices.
- As per the market sources cash premium for Indian raws are continued to be around 90/100 points.
Brazil Weather Update:
Dry weather continued in major cane growing regions of CS Brazil and is likely to continue in coming week which will prove beneficial for improve the pace of crushing.
Forecast for next week predicts, rainfall anomaly over major cane growing regions of CS Brazil at 25-50% which will be helpful for harvesting activity but its likely to impact the yield of the standing crops in late harvest.
Rainfall over major cane growing regions of Sao Paulo is at multi year low. Rainfall activity is below normal from the beginning of 2020 which has impacted the crop growth and also yield potential.
Cumulative rains from Oct to Apr are lower by 31% as compared with last 10-year average rains.
Average rains in the month of April is lower by 53% which is likely to hinder the cane growth in late harvest which in vegetative to grand growth phase.