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Sugar prices at Vashi market on Tuesday witnessed an uptrend on the back of fresh local buying and improved inquiry from upcountry buyers.
In the beginning spot price slightly declined by Rs 5 on increase resale selling but later on the price improved, tracking increase in naka and mill tender rates.
Mills have increased their tender rates on seeing demand support. At mill level prices improved by Rs 10 to Rs 15 a quintal and Naka rates also shot up by the same amount. Volume also improved.
Sentiment was firm.
A wholesaler at Vashi APMC market said prices have bottomed out and improvement in demand, price is expected.
Mr Harakhchand Vora of Kavita Trading Co said: “Till now market was ruling weak due to lack of demand. But from today with improvement in local demand and buying inquiry from upcountry, overall sentiment of the market has changed. With an improvement in consumer demand, sugar price may show an upward trend in the coming days.”
Prices at mill level, considering high input cost, seems to have bottomed out and are now at less risky level. Traders and stockiest have now started fresh buying. Fresh local demand is also supporting the sentiment, he added.
Market sources said in the current month mills have sold a good amount of sugar; and there is no more pressure for selling, as was witnessed in the previous two-three months. However, there is a quota that mills have to sell before the month-end. With improvement in demand, mills will not face any difficulty in making the sale, they said.
Mills are in favour of reducing the inventory. Arrivals and dispatches in Vashi market also improved in line with demand. Inventory in Vashi market was at 70-75 truckloads (each of 100 bags).
About 27 mills have offered tenders and sold 1.25-1.50 lakh bags of sugar (100 kg each) in the improved range of Rs 2,600-Rs 2,650 for S-grade and Rs 2,660-Rs 2,720 for M-grade.
Most mills got good response to their tender offer. Arrival in the market was at 48-50 truckloads (each of 100 bags) and local dispatch was 44-45 truckloads. Freight rates were steady.
Bombay Sugar Merchants Association sugar rates for spot were S-grade Rs 2,720-Rs 2,761 (Rs 2,726-Rs 2,761) and M-grade Rs 2,776-Rs 2,881 (Rs 2,786-Rs 2,881).
Naka delivery rates for S-grade were Rs 2,690-Rs 2,710 (Rs 2,685-Rs 2,720) and M-grade were Rs 2,720-Rs 2,800 (Rs 2,715-Rs 2,795).
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