Continuous selling drags sugar

Bearish trend in sugar market continued on Monday on desperate selling by producers in absence of positive cues. Millers offloaded fair – lower quality sugar at Rs 30-40 lower on Saturday which pulled down naka rates by Rs 10-20 and spot prices by Rs 20-50 a quintal at Vashi terminal market. Arrivals and local dispatches improved on higher demand for Holi festival. Jagdish Rawal of B. Bhogilal and Co said: “Local retail demand improved ahead of Holi festival. But at upper level producers seem to have started desperate offloading at lower rates which weighed on physical market sentiment. Upcountry buying is lacking since long in Maharashtra forcing millers to sell the commodity in State-level markets”.

On the NCDEX, sugar April futures was Rs 2,945 (Rs 2,939), May at Rs 2,990 (Rs 2,980) and June Rs 3,035 (Rs 3,024) till noon.In Vashi market, arrivals were 63-64 truckloads (each of 100 bags) and local dispatches were 64-65 loads. On Saturday evening, about 17-18 mills offered tenders and sold nearly 54,000-55,000 bags to local traders at Rs 2,950-2,990 (Rs 2,980-3,020) for S-grade and Rs 3,000-3,150 (Rs 3,050-3,160) for M-grade.

The Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,082-3,181 (Rs 3,132-3,211) and M-grade Rs 3,182-3,366 (Rs 3,202- 3,371).

Naka delivery rates: S-grade Rs 3,050-3,080 (Rs 3,070-3,100) and M-grade Rs 3,120-3,250 (Rs 3,125-3,250).