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Sugar prices ruled steady on Friday, on usual demand and supply position. A ready and naka rate was unchanged.
Mill tender rates were showing some weakness. At the production level selling pressure continues, even after some improvement due to export permission and extension of stock holding limits.
With the time limit for the current month's free sale quota coming to end next week, it will add some pressure to complete sales at mill level. The under tone was a steady, said traders.
Mr Harakhchand Vora, Vice-President of Bombay Sugar Merchants Association, said, now market players are eying an announcement of free sale quota for next month. Talk of lesser quota was impacting market sentiment.
For the current month, a total of 16.84 lakh tonne free sale quota was declared. Mills have not off- loaded the expected quantity due to absence of demand in the first fortnight. There will be pressure on mills for selling monthly quota.
The positive part currently is that with the high and increasing temperature throughout India will lead to more demand for the sweetener and the market will see positive conditions the in coming days. Currently month-end lower retail demand kept traders away from fresh bulk/inventory buying for the short term.
On Thursday evening about 8-0 mills came forward with tender offer and sold about 40,000-45,000 bags in the range of Rs 2,680-2,715 for S grade and Rs 2,725-2,765 for M grade. Sugar price in other producing centres also ruled steady on need-based demand.
Last month sugar prices touched a low level of Rs 2,640-2,670 for S grade and Rs 2,680-2,720 for M grade at the mill level.
On Friday, arrival in the Vashi markets also declined to 38-40 truck loads (each of 100 bags). Local dispatches were at 35-36 truck loads on thin retail buying.
Bombay Sugar Merchants Association sugar rates:
Spot rates: S grade Rs 2,801-2,841 (Rs 2,801-2,841) and M grade Rs 2,841-2,926 (Rs 2,841-2,926).
Naka delivery rates: S grade Rs 2,770-2,800 (Rs 2,770-2,800) and M grade was Rs 2,785-2,880 (Rs 2,785-2,880).
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