Mumbai, 24 Jan (Commoditiescontrol): Sugar futures on ICE rallied on Friday, recovering from a five-month low earlier in the week, as fears of surplus Indian supplies flooding the global market subsided.
At 22:30 IST on Friday, raw sugar was trading at 19.04 cents per pound, up 1.87%. Prices advanced further today to 19.15 cents per pound, indicating sustained bullish momentum. White sugar also gained 2.4% to settle at $498.60 per ton.
The rally was supported by reports that Indian traders are struggling to secure export deals despite New Delhi's recent approval for 1 million tons of sugar shipments this season. According to trade sources, Indian mills are demanding significant premiums over London prices, undermining their competitiveness in global markets. Previously, Indian sugar prices were heavily discounted against global rates, making exports lucrative. However, the export approval has driven up domestic prices, while global prices softened, eroding profitability for Indian mills.
In Thailand, the market faces headwinds following China's ban on sugar syrup and premixed powder imports. The policy has left shipments stranded at Chinese ports, with Thai businesses projected to incur losses of up to 1 billion baht ($29.5 million). This development underscores the far-reaching impact of trade policy shifts in key importing nations.
The sugar market remains volatile, with traders closely monitoring global demand trends and regulatory developments.
(By Commoditiescontrol Bureau: +91 9820130172)
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