Sugar prices extended losses for the fifth straight day on Wednesday in absence of new demand for stocks. Local retailers, though active, bought hand-to-mouth. Selling by hand-mills because of high stocks weakened the market. Spot price on the Vashi wholesale market terminal dropped by Rs 10 for S-grade and by Rs 5 for M-grade a quintal on Wednesday. Naka rates were down by Rs 5-10 for S-grade on selling and a sudden drop in futures. In the last five days, prices have declined by Rs 65. Market remained weak overall despite better retail demand, said traders.

Wholesalers said prices remained weak due to lack of demand, despite a rise of Rs 5-7 in freight rates and shortage of trucks at some producing centres. In the last fortnight, lorry freight rates have gone up by Rs 12-15 a bag, as trucks are diverted for transporting sugar for exports. Mills, who have good stocks, are bound to off-load. A fall of Rs 45 in sugar futures till nooon hit the physical market as well. Stockists avoided buying new stocks. Arrivals and dispatches were usual. Most mills, not keen to sell at the lower prices due to disparity, kept tender offers open. Naka rates for quality M-grade gained Rs 15 on new buying inquiries from bulk consumers.

On Tuesday, 14-15 mills sold 38,000-40,000 bags of a quintal each at Rs 2,535-2,550 for S-grade and Rs 2,570-2,640 for M-grade. Arrivals were at 47-48 truck loads fo 100 bags each, and local dispatches were at 45-46 truck loads.

Bombay Sugar Merchants Association spot rates: S-grade Rs 2,671-2,712 (Rs 2,681-2,722) and M-grade Rs 2,716-2,841 (Rs 2,721-2,841).

Nakadelivery rates: S-grade Rs 2,625-2,640 (Rs 2,630-2,660) and M-grade Rs 2,670-2,770 (Rs 2,670-2,750).

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