Mumbai: Sugar futures on NCDEX on May 24, gained 2.14 per cent to increase to Rs 1,291 a quintal on unconfirmed news that the Government likely to mop up buffer stock limit from 20 lakh tonnes to 50 lakh tonnes. Spot price of sugar in Mumbai markets was also high by Rs 50 at Rs 1,350 per quintal. Moist and cold weather during the next 10 days in south-eastern state of Sao Paulo, where 60 per cent of Brazil's sugar cane is grown, may hit harvesting. The delay in harvesting is likely to slowdown sugar supplies.
Brazilian cane farmers usually wait for dry weather to harvest. Brazil is hoped to produce a record 513.1 million tonnes (mt) of cane, up from 455.3 mt in 2006. In India, sugar output in 2005-06 season is seen topping the earlier estimate of 27.5 mt. Production of 22 mt has already been achieved by the end of April. With one more month to go for the end of crushing, the total output will cross 26 mt.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment