Agri Business

Bearish trend in sugar

Our Correspondent Mumbai | Updated on September 28, 2020 Published on September 28, 2020

The sugar market witnessed a bearish trend on Monday as mills sold the commodity ₹10 lower amid need-base local demand on sufficient supply and increased lifting pressure for month-end on traders. Despite the upcoimng festive season, buying sentiments are not improving due to the tight financial situation of consumers. Continuous selling by mills kept morale weak.

The quota for September is 22 lakh tonnes, up from 20.50 lakh tonnes in August. Both the months faced less-than-expected demand due to severe Covid-19 impact, said market sources. New arrivals and local dispatches remained lower as it is the end of the month, sources said.

Arrivals at Vashi were about 36-37 truckloads (Each of 10 tonnes) and local dispatches were 34-35 truckloads. Inventory at the terminal market was 90-95 truckloads. Freight rates were steady ₹80-95 per bag.

On Saturday evening, about 14-15 mills sold about 30,000-32,000 bags at ₹3,130-3,200 (₹3,140-3,210) for S-grade and ₹3,220-3,300 (₹3,230-3,310) for M-grade. Mills were offering old fair quality stocks at ₹10-15 further discount.

Bombay Sugar Merchants Association’s spot rates (₹/quintal): S-grade ₹3,280-3,352 (₹3,282-3,352) and M-grade ₹3,386-3,492 (₹3,392-3,502).

Naka delivery rates (₹/quintal): S-grade ₹3,240-3,290 (₹3,240-3,290) and M-grade ₹3,330-3,390 (₹3,330-3,390).

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Published on September 28, 2020
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