Sugar prices on the Vashi wholesale market continuous to rule unchanged on Friday on expectation of ease in supply and demand in the coming days.

The undertone remained weak in the physical market as Diwali is over.

Traders expect more selling from producers as they have to exhaust their free sale quota before the month end. The Government has declared a total of 40 lakh tonnes of non-levy quota for October-November said sources. A wholesaler said that due to continuous supply from mills, arrivals and local dispatches remained routine. Domestic sugar futures prices were firm due to ongoing agitation of farmers for higher cane price in the main producing areas which may lead to delay in crushing and disturb supply chain. Currently, supply is ample in the local market. Demand from neighbouring states is missing in Maharashtra since long time due to disparity. Prices in other producing states ruled at par with Maharashtra.

On the National Commodities and Derivatives Exchange, December futures were up by Rs 4 to Rs 3,335 (Rs 3,331); January by Rs 15 to Rs 3,360 (Rs 3,345) and February was higher by Rs 11 to Rs 3,375 (Rs 3,364).

In the Vashi spot market, loading-unloading activities seen higher. Arrivals were higher at 70-72 truck loads (Each of 100 bags) and local dispatches were about 68-70 truck loads.

On Thursday evening 12-13 mills offered tenders and sold about 44,000-45,000 bags (Each of 100 kg) to the local traders in the range of Rs 3,330-3,380 (Rs 3,330-3,380) for S-grade and Rs 3,390-3,510 (Rs 3,400-3,520) for M-grade.

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,472-Rs 3,551 (Rs 3,472-3,552) and M-grade Rs 3,502-3,721 (Rs 3,512-3,711). Naka delivery rates: S-grade Rs 3,411-3,495 (Rs 3,411-3,495) and M-grade Rs 3,425-3,685 (Rs 3,425-3,685).

(This article was published on November 16, 2012)
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