Commodities

Further drop in sugar unlikely

Our Correspondent Mumbai | Updated on May 27, 2013 Published on May 27, 2013

BL28_COM2__SUGAR_HARVEST

Sugar prices declined further by Rs 10-20 a quintal on Monday taking total loss of Rs 50-80 since market reopened on last Wednesday.

Naka rates were down by Rs 10 for S-grade and Rs 30 for M-grade.

Mill tender rates dropped by Rs 10-20 for both varieties as producers offloaded commodity to maintain financial liquidity on hand on poor demand.

Sentiment was steady as prices are already ruling below cost of production at upper - mill level and it will not go down further.

Though currently demand is poor due to month-end, it is expected to improve next week. Futures were almost flat with cautious mood, said market observer.

In Vashi market 58-60 truck loads (each of 100 bags) arrived on Monday but slack local demand cap local dispatches to around 54-55 truck loads.

Inventories in Vashi market increased on third consecutive day.

On Saturday evening, merely 9-10 mills offered tenders and sold 24,000-25,000 bags at lower price of Rs 2,930-3,010 (Rs 2,940-3,020) for S-grade and Rs 3,030-3,100 (Rs 3,040-3,120) for M-grade.

On National Commodities and Derivatives Exchange, sugar June futures was steady at Rs 3,020, July Rs 3,077 (Rs 3,074) and August Rs 3,139 (Rs 3,133).

Bombay Sugar Merchants Association's spot rates were: S-grade Rs 3,082-3,170 (Rs 3,102-3,180) and M-grade Rs 3,152-3,381 (Rs 3,232-3,411). Naka delivery rates: S-grade Rs 3,040-3,070 (Rs 3,050-3,080) and M-grade Rs 3,100-3,200 (Rs 3,140-3,220).

Published on May 27, 2013
This article is closed for comments.
Please Email the Editor