Spot sugar eases on limited offtake

Our Bureau Mumbai | Updated on March 04, 2011


Sugar prices on the Vashi wholesale market witnessed a mixed trend as price were weak at spot level on need-based demand but higher at naka level a selling pressure eased. Mill tender rates were unchanged on usual demand support. The market is waiting for a positive direction as mills are not keen to sell at lower price, said traders.

A leading broker said on Friday that spot rates were down by Rs 3-5 on limited fresh buying. Naka rates were up by Rs 10. Upcountry and local stockist buying was at usual level. Arrivals in the market were higher than dispatches. Inventories with stockists is limited, so once the demand picks up every one will rush to cover.

A wholesaler said fresh demand from neighbouring States and local retailers was still below expectations. Rising temperature and upcoming Holi festival could create demand for sugar is expected to rise.

On Thursday about 12-14 mills came forward with tender offer and sold total quantity of about 65,000-70,000 bags, including one rail rake (27,000 bags in each wagon) in the range of Rs 2,690-2,730 for S-grade and Rs 2,740-2,780 for M-grade. Arrivals in the markets were 50-52 truckloads (100 bags each) and local dispatches were at 48-50 truckloads.

Bombay Sugar Merchants Association sugar rates were: Spot: S-grade Rs 2,801-2,861 (Rs 2,811-2,861) and M-grade Rs 2,851-2,921 (Rs 2,853-2,921).

Naka delivery rates: S-grade Rs 2,770-2,800 (Rs 2,760-2,790) and M-grade was Rs 2,820-2,875 (Rs 2,810-2,865).

Published on March 04, 2011

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