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Sugar prices witnessed a steady trend at Vashi market on Tuesday. Prices ruled range-bound, at Rs 5-7 plus or minus, minus depending upon the need of buyers-sellers. Volume was normal as local demand eased due to month-end period. Market is now waiting for announcement of new month's free sale quota, which will set the future direction for the market, according to traders.
A wholesaler said the free sale quota would be announced this week. Traders are eagerly waiting for it before committing any fresh bet. Most market players expect a higher quota for August, it being a festival month.
In physical markets, spot rates were steady as retail demand was down due to month-end. S grade was sold Rs 3-5 higher while M grade was sold Rs 5-7 lower on lack of demand. Naka and mill tender showed a mixed trend on improved selling by some mills and buying demand for quality sugar.
As mills are continuously selling sugar this month, there has not been much pressure on them for selling this month's quota. Last month, 3 lakh tonnes sugar was carried forward to current month's quota. For July ‘11, government declared 12.60 lakh tonnes of normal quota compared with 16.50 lakh tonnes for the previous month, June ‘11. From August, the festival season starts in India and demand will also rise. Considering higher production, government should declare higher free sale quota in festival months, the wholesaler said.
Due to month-end period, sentiment for fresh business was lacking in selling as well as buying. On Monday, lesser mills offered tenders and sold nominal quantity. About 18/20 mills have sold about 22,000/25,000 bags (100 kg each) to local buyers in the range of Rs 2,690-2,740 (Rs 2,7002,740) for S grade and Rs 2,750-2,850 (Rs 2,7602,850) for M grade. Arrival in the Vashi market was 48/50 truck loads (Each of 100 bags) and local dispatches were 46 /47 truck loads. In international market, London white sugar October -11 future was down to 797.40 (812.70) dollar per tonne on Monday.
Bombay Sugar Merchants Association sugar rates
Spot rates : S grade Rs 2,816/2,856 (Rs 2,8082,862) and M grade Rs 2,866-3,001 (Rs 2,873-3,006).
Naka delivery rates : S grade Rs 2,7502,800 (Rs 2,780-2,800) and M grade was Rs 2,850-2,960 (Rs 2,8402,960).
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