Sugar prices on Vashi market rebounded on Thursday after witnessing an uninterrupted drop of Rs 200 a quintal in last three days. Spot prices rose by Rs 30-50 on improved retail demand. Naka rates edged up by Rs 20-40 tracking a firm trend at mills level as producers held back expecting higher price and higher demand in the coming days.
Domestic sugar futures prices also corrected as speculators bet taking fresh long positions on fears of lower production next year. A Vashi-based wholesaler said the market corrected on Thursday on fresh retail buying support.
Prices in last three days have come down by Rs 200, attracting fresh stockists covering at lower level. In Vashi market, arrivals were 54-55 truckloads (each 100 bags of a quintal each) and local dispatches were about 52-54 loads.
On Wednesday evening, merely 7-8 mills offered tenders and sold about 45,000-50,000 bags routine quality (of 100 kg each) in the range of Rs 3,420-3,480 (Rs 3,420-3,480) for S-grade and Rs 3,520-3,550 (Rs 3,500-3,540) for M-grade. Mills tenders were expected Rs 20-30 higher late evening.
Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,551-3,651 (Rs 3,512-3,621) and M-grade Rs 3,621- 3,761 (Rs 3,581- 3,711).
Naka delivery rates: S-grade Rs 3,500 -3,550 (Rs 3,480-3,510) and M-grade Rs 3,570-3,670 (Rs 3,570-3,670).