Festival demand lends support to sugar

Our Correspondent Mumbai | Updated on August 12, 2013 Published on August 12, 2013

Sugar prices ruled steady on Monday on routine demand and ample supply.

Freight rates which improved slightly the previous week on shortage of trucks due to Ramzan Id again came to normal level led to ample arrivals in the market.

Prices at all level spot, Naka and mill level were unchanged.

In futures market, prices were range-bound with thin volatility.

A Vashi-based wholesale trader said that supply improved after last week’s tight position as availability of trucks was normal at producing centres.

Freight rates also eased by Rs 2-4 a bag.

Arrivals and local dispatches were at par as retailers’ demand for festivals such as August 15, Raksha Bandhan and Janmashtami provided support. Sugar prices will not see any volatility in the near-term as supply outstrips demand, he said.

Analyst said that Maharashtra’s producers are forced to sell in the local market due to surplus production and stocks besides absence of neighbouring States buying.

Prospects for sugar output next year is also bright as Maharashtra and Uttar Pradesh, the top two sugar producers, have received excess rainfall, boosting prospects of higher yield and production.

Sources said that arrivals in the Vashi wholesale market were 61-62 truckloads (each 100 bags) while local dispatches were 60-61.

On Saturday evening, 11-12 mills offered tenders and sold about 38,000-40,000 bags at Rs 2,910-2,980 (Rs 2,920-2,980) for S-grade and Rs 3,000-3,110 (Rs 3,000-3,120) for M-grade.

On the National Commodities and Derivatives Exchange, sugar September futures were up by Re 1 at Rs 3,018 (Rs 3,017); October was down by Rs 3 to Rs 3,028 (Rs 3,031) and November declined by Rs 12 to Rs 3,005 (Rs 3,017).

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,052-3,142 (Rs 3,052-3,142) and M-grade Rs 3,172-3,352 (Rs 3,172-3,352). Naka delivery rates were: S-grade Rs 3,010-3,070 (Rs 3,010-3,070) and M-grade Rs 3,100-3,210 (Rs 3,100-3,210).

Published on August 12, 2013
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