Sugar cools as demand retreats

Spot sugar prices on the Vashi market eased marginally on Friday as the demand retreated from higher level.

Spot price declined by Rs 10a quintal for S-grade, while M-grade ruled steady. In naka, resale selling pressure cooled down prices by Rs 10-20 for both grades. Mills are still not eager to sell at lower rates despite lower demand.

The volume was higher due to upcountry buying. In the local market, it was lower than the previous day due to eased demand. Mills witnessed fresh active buying from neighbouring States. A total of about 1.45-1.50 lakh bags was sold by State's mills on Wednesday evening, said market sources.

On Thursday, about four rail rakes (each 27,000 bags of 100 kg) means about one lakh bags was bought by neighbouring States' buyers at Rs 2,800-level.

Mills are not eager to sell at lower rates, expecting higher demand during the festival season which starts from August. On the one side, mills have to exhaust current month's free sale quota before month end, and on the other, they are not eager to sell at lower rates.

About 24-25 mills have offered tenders and sold about 40,000-42,000 bags (100 kg each) to local stockists in the range of Rs 2,680-Rs 2,730 (Rs 2,700-Rs 2,730) for S- grade and Rs 2,750-Rs 2,830 (Rs 2,750-Rs 2,830) for M-grade. Arrival in the market was lower 46-47 truckloads (each 100 bags) and local dispatches were about 43-44 truckloads, he said.

Bombay Sugar Merchants Association sugar rates: Spot: S-grade Rs 2,801-2,842 (Rs 2,800-2,851) and M-grade Rs 2,851-2,991 (Rs 2,851-2,991).

Nakadelivery rates : S-grade Rs 2,750-2,780 (Rs 2,770-2,800) and M grade was Rs 2,830-2,950 (Rs 2,830-2,930).

COMMENT NOW