Spot sugar prices on the Vashi wholesale market recovered sharply on Thursday on the back of modest rise in domestic futures market. On commodity exchanges, sugar futures have increased by Rs 40-42 in two days, supporting the spot market sentiment.

On the spot, the gain was restricted to Rs 5-8 a quintal due to less than expected demand. But there was sharp rise of Rs15-20 at mill and naka levels. Talk of either expectation of fewer free sale quotas for May or extension for current month's unsold free sale quota, turned sentiment firm said market sources.

An official of the Bombay Sugar Merchants Association said continued normal supply from mills kept volume normal in the spot market as also arrival and dispatches. The expectation of lower free sale quotas for May or extension for current month's unsold free sale quota, turned the sentiment firm in the futures market.

Mills are not ready to sell below Rs 2,600-level due to higher cost of production. On the other hand, consumer demand is not as expected due to vacation.

Neighboring States purchases are yet to pick up. Inventories in market are also ample. According to traders, 23-24 mills offered tenders and sold about 58,000-60,000 bags (100 kgs each) to local stockists in the range of Rs 2,610-2,640 for S-grade and Rs 2,670-2750 for M-grade with the rise of Rs 15-20. Arrivals in the market was about 50-52 truckloads (each 100 bags) and local dispatches were 48-50 truckloads.

The Bombay Sugar Merchants Association sugar rates were : Spot: S-grade Rs 2,741-2,771 (Rs 2,740-2,765) and M-grade Rs 2,741-2,891 (Rs 2,760-2,891).

Naka delivery rates : S-grade Rs 2,710-2,735 (Rs 2,690-2,730) and M-grade Rs2,735-2,795 (Rs 2,750-2,830).

Related Topics
comment COMMENT NOW