Spot sugar on the Vashi wholesale terminal improved on Monday on demand from retailers. Spot prices were up Rs 5-10 a quintal tracking firm naka and mill tender rates. Producers sold at Rs 15-20 higher on Saturday evening. Naka prices were up Rs 20 for M-grade. The market sentiment was positive, as futures extended gains by Rs 33-34 till noon.
“Prices at the mill level may not fall below Rs 3,000-3,050, considering higher production parity cost. Demand from retailers and wholesalers may lift prices now, after they fell by over Rs 150 a quintal over the last month and a half on higher supplies,” said a wholesaler.
He further said upcountry buying has been missing in Maharashtra since long, as prices in other producing centres are on a par. So the improvement will be slow. Currently, Vashi carries more than 120 truckloads of inventory.
In Vashi, 64-65 truckloads (each of 100 bags) arrived and 62-63 truckloads were locally despatched. On Saturday, 11-12 mills offered tenders and sold 54,000-55,000 bags (each of a quintal) at Rs 3,050-3,090 (Rs 3,040-3,090) for S-grade and Rs 3,145-3,240 (Rs 3,130-3,230) for M-grade. On the National Commodities and Derivatives Exchange, the March contract was up to Rs 3,081 (Rs 3,048), April to Rs 3,118 (Rs 3,085) and May to Rs 3,159 (Rs 3,126) till noon.
Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,192-3,272 (Rs 3,192-3,272) and M-grade Rs 3,302-3,431(Rs 3,292-3,431).
Naka delivery rates: S-grade Rs 3,140-3,180 (Rs 3,140-3,180) and M-grade Rs 3,220-3,350 (Rs 3,200-3,330).