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Spot sugar prices at Vashi market finished marginally higher after initial loss of Rs 5 on Friday evening on expectation of higher demand for the oncoming Ram Navmi Festival.
Some covering buying by stockists kept market sentiment firm. Prices ruled firm by Rs 5-7 in ready delivery. Naka and Mill tender rates ruled steady on unconfirmed reports of April-11 normal free sale quota of 17 lakh tonne including one lakh tonne carry forward. The morale was bullish.
Mr Jagdish Rawal, a wholesale trader of Vashi market said, the uptrend is expected to regain strength in coming days especially for Ram Navmi starting from next week.
Unconfirmed reports of allocation of 17 lakh tonnes normal free sale quota for April-11 is considered as hand-to-mouth but sufficient for the full summer days of the month. The expected spurt in demand for sugar will support positive sentiment.
At current low level price, stockists have started covering at the mill level. On the other side producers are also not willing to sell at lower price to avoid losses.
By March end more than 70 per cent of the season gets over and production is also going to dip in the coming months. Generally in India the sugar season ends in May-end or the first week of the June. In this situation sugar prices are bound to bounce back. He said.
Taking into account the holiday mood due to Saturday's Cricket World Cup Final and the market being closed on Monday due to Gudi Padwa festival , retailers have come forward with fresh buying resulting in active volume today.
On Thursday evening 10-12 mills have sold about 58,000-60,000 bags (100 kg each) of sugar to the State-level stockists in the range of Rs 2,660-2,690 for S grade and Rs 2,700-2,750 for M grade.
Mills kept tender offer open in the same price range. From next week, demand from upcountry is also expected. Arrival in the markets was at 50-52 truck loads (each of 100 bags) and local dispatches were at 43-45 truck loads.
Bombay Sugar Merchants Association sugar rates:
Spot rates: S grade Rs 2,781-2,826 (Rs 2,781-2,831) and M grade Rs 2,826-2,916 (Rs 2,831-2,916).
Naka delivery rates: S grade Rs 2,750-2,760 (Rs 2,750-2,770) and M grade was Rs 2,800-2,860 (Rs 2,800-2,860).
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