Correction may set in sugar market

Our Correspondent Mumbai | Updated on November 18, 2011 Published on November 18, 2011


Sugar prices on Friday were up Rs 10 on the Vashi wholesale spot market. With the Friday's rise, sugar prices have increased Rs 200 this month. The sentiment eased on profit booking in futures and physical market. Freight rates from Kolhapur, Karad and Sangli sides improved by Rs 4-5 a bag said traders.

Naka rates increased Rs 10 in S-grade while fine variety m-grade declined Rs 20. Mills tender rates showed mixed trend with M-grade selling Rs 15-20 lower while S-grade extended gain by Rs 10-20 in fair quality.

Local demand has eased after Diwali. The currently rally is due to jump in futures market.

Considering ample supply position and stock available with mills, the market may see some correction and then stabilise at Rs 3,000.

“In October, free sale quota was 17 lakh tonnes and sugar prices couldn't cross Rs 3,000.

“While for November, prices have gone above to Rs 3,200.” In Vashi market, the volume was as usual. On Thursday, 13–14 mills offered tenders and sold about 38,000-40,000 bags to local traders in the range of Rs 2,920–2,990 (Rs 2,890–2,990) for S-grade and Rs 3,000–3,060 (Rs 3,000–3,070) for M-grade.

Arrivals were at 47-48 truckloads and local dispatches were nearly 42–43 truck loads. Bombay Sugar Merchants Association sugar rates (Rs/quintal): Spot: S-grade Rs 3,030-3,111 (Rs 3,021-3,100) and M-grade Rs 3,106-3,241 (Rs 3,101-3,231).

Naka delivery: S-grade Rs 3,010-3,040 (Rs 3,000-3,040) and M grade Rs 3,100-3,160 (Rs 3,100-3,180).

Published on November 18, 2011
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