Sugar prices at the Vashi market gained further by Rs 10-20 a quintal on Tuesday, taking total increase in the month to Rs 475-525. The commodity continued its bullish trend as mills’ month-end offloading pressure in July is lower. Arrivals and local dispatches improved on expectations of higher demand usual during the beginning of a month. Sugar futures prices at domestic level were range-bound despite a slight improvement in international markets. The sentiment was positive, said sources.

Vashi-based wholesalers said the undercurrent of the market will remain positive ahead of festivals. Rakshabandhan, Janmashthami, Independence day and the ongoing celebration of Ramzan are expected to spur demand. On the other side, mills are holding back stocks as they continue to receive buying support. Possibilities of lower production next season and improved chances for sugar exports after a favourable turn in international prices support the sentiment.

The crushing season for 2011-2012 is now over and new season is two months away, traders said.

An analyst said sugar futures in the global market edged up above the key $600-level on Monday, supported by deficit monsoon in India. October-12 futures closed higher by $6.00 to $620.20 ($614.20) while December-12 futures price was up by $3.90 to $600.60 ($596.70) a tonne.

At the Vashi market, arrivals were 55-56 truckloads and local dispatches were also higher at 54-55 truckloads on improved demand. On Monday evening, only 12-14 mills offered tenders and sold about 80,000-85,000 bags (each of 100 kg) to the local stockists in the steady range of Rs 3,350-3,410 (Rs 3,350-3,410) for S-grade and Rs 3,430-3,490 (Rs 3,430-3,490) for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,482-3,572 (Rs 3,452-3,552) and M-grade Rs 3,522- 3,625 (Rs 3,512- 3,611).

Naka delivery rates: S-grade Rs 3,440 -3,480 (Rs 3,430 -3,470) and M-grade Rs 3,480-3,580 (Rs 3,480-3,550).

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