Sugar Stocks Soar Amidst Market Sell-off: Crude Prices, Ethanol Demand Fuel Rally

• Balrampur Chini, Dhampur, and other sugar stocks surged 6-10% on March 4, defying a broader market sell-off.
• Global sugar prices spiked due to rising Crude oil prices, triggered by the US-Iran war in West Asia.
• Higher oil prices are expected to boost ethanol production, potentially shifting cane from sugar to ethanol in countries like Brazil.
• This shift could tighten global sugar supplies, further driving up prices and increasing demand for sugar in biofuel production.
• Speculators covered short positions, and refined sugar premium over raw variety also jumped, contributing to the rally.