Sugar prices at Vashi spot market decline by Rs 10 a quintal for fair quality on Wednesday. Fine variety rule unchanged. Naka and mill tender rates were steady due to routine business, arrivals and dispatches. Sentiment remained steady. Domestic sugar futures prices drop by more than Rs20 till noon tracking lower rates of physical markets said traders.
Mr. Jagdish Rawal of B. Bhogilal and co. said “in physical market prices for fair quality dropped further on buyer resistance and continued selling by mills. Though there was no selling pressure for fine variety new sugar either from producer or from trades hence prices at upper level (Naka and Mill level) rule steady. Local demands also ease due to month end time. Market is waiting for some positive cues. Domestic futures prices are higher than spot market rates hence selling pressure continued in futures. Bearish world sugar prices also weigh on domestic futures prices”.
On Wednesday in Vashi market arrivals were 58-60 truck loads (Each of 100 bags) and local dispatches were 56-58 truck loads. On Tuesday evening about 17-18 mills offered tenders and sold about 68,000 – 70,000 (Each of 100 kgs) bags in the steady range of Rs3,130-3,180 (Rs3,130-3,180) for S-grade and Rs 3,240 - 3,290 (Rs3,240 - 3,290) for M-grade.
In World market white sugar prices hovering near a 2010 low as investors exited long positions amid signs of a growing surplus. On Tuesday March-13 futures closed lower by $6.60 to $483.20 ($489.80) and May-13 futures drop by $4.90 $495.10 ($500.00) a tone.
On National Commodities and Derivatives Exchange sugar prices for February-13 futures further decline by more than Rs.20 to Rs3207 (Rs 3230), March-13 drop to Rs3250 (Rs 3270) and April was Rs3305 (Rs3327) till noon. .
Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,232–Rs 3,322 (Rs 3,242 – Rs 3,322) and M-grade Rs 3,321 - 3,452 (Rs 3,331- 3,452). Naka delivery rates were: S-grade Rs 3,220 -3,260 (Rs 3,220 -3,260) and M-grade Rs 3,260-3,400 (Rs 3,260-3,400).