Commodities

Mills continue selling sugar

Our Correspondent Mumbai | Updated on October 09, 2012 Published on October 09, 2012

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Sugar prices were mixed on Tuesday on the Vashi wholesale market with the prospects of settling down at current level.

The volume in the physical market was routine and continuous selling by mills kept demand – supply ample in the market. In physical market, prices were unchanged, while naka rates improved by Rs 10 for fine S-grade variety.

Mill tender rates were down by Rs 10-30 on higher selling, said traders.

A Vashi-based wholesaler said that mills are continuously selling as combined open sale quota for October and November is considered to be higher. Second, local demand is also as usual due to middle month. But traders are very optimistic about rebound in demand from next week ahead of Dasara.

He said that on Monday evening Maharashtra’s mills sold more than 1.10 lakh bags including one rail rake (about 27,000 bags).

The beginning of new crushing season will add more pressure in the coming days as producers are carrying sufficient carryover stocks.

Sugar prices in other centres are at par with Maharashtra limiting their demand in the State. On expectation of higher demand, mills are not very keen to sell at lower price. They expect buying interest of Eastern States may continue in the coming days. Arrivals in Vashi continued to be higher. In Vashi market, arrivals were about 65-66 truckloads (each of 100 bags of quintal each) and local dispatches were about 62-63 loads.

On Monday evening, about 22-24 mills offered tenders and sold 88,000- 90,000 bags (each of 100 kg) to the local traders and one rail rake – 27,000 bags to eastern buyers in the range of Rs 3,350-3,440 (Rs 3,380-3,440) for S-grade and Rs 3,450 - 3,540 (Rs 3,460 - 3,540) M-grade.

The Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,522- 3,575 (Rs 3,522-3,575) and M-grade Rs 3,572-3,721 (Rs 3,592-3,701).

Naka delivery rates: S-grade Rs 3,450-3,510 (Rs 3,450-3,500) and M-grade Rs 3,530-3,620 (Rs 3,530-3,620).

Published on October 09, 2012
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