Spot prices in the Vashi wholesale sugar market increased by Rs 3 for fine variety M-grade while S-grade rule steady on Friday.

In Naka trade, M-grade bold variety sold at Rs 5-10 higher while S-grade was sold at Rs 5-10 lower.

Mill tender rates were unchanged as mills continued selling to cut down stocks. Volume was higher as the market remained closed the previous day.

Sources said, “Once the world market prices crossed $525-530 level, chances of Indian shipment will be brighter.

“Weak rupee has helped India to re-enter in export market. Producers are carrying huge surplus stocks.

“Undercurrent of the market remained positive as producers and exporters have started discussing possible export deals as prices in the world market have improved in the last few days and the rupee is weak.”

Sources said, considering higher cost of production and rise in supply in local market, prices are ruling range-bound since the last few weeks.

Stockists are seen keeping away from taking risk of bulk inventory buying as sufficient stocks are available in the market. Domestic sugar prices are not expected to go down further from current level.

Arrivals in the Vashi market were 64-65 truck loads (each of 100 bags) while local dispatches were 62-63.

On Wednesday evening only 9 -10 mills offered tenders and sold about 32,000-34,000 bags at Rs 2,910-3,000 (Rs 2,910-3,000) for S-grade and Rs 3,010-3,110 (Rs 3,010- 3,110) for M-grade.

On the National Commodities and Derivatives Exchange, sugar September futures were up by Rs 7 to Rs 3,017 (Rs 3,010), October by Rs 3 to Rs 3,030 (Rs 3,027) and November was higher at Rs 3,019 (Rs 3,018) till noon.

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,052-3,142 (Rs 3,052-3,142) and M-grade Rs 3,175-3,352 (Rs 3,172-3,352).

Naka delivery rates were: S-grade Rs 3,005-3,060 (Rs 3,010-3,070) and M-grade Rs 3,100-3,220 (Rs 3,100-3,210).

Related Topics
comment COMMENT NOW