Commodities

Resale pressure keeps sugar on leash

Our Correspondent Mumbai | Updated on October 10, 2012 Published on October 10, 2012

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Sugar prices ruled firm at mill level but declined in the spot market by Rs 10-15 on Wednesday on higher resale selling at naka level.

Fresh selling pressure for lifting commodity from mills and increase in transportation charges pushed up mill tender rates Rs 10 higher.

Naka rates dropped by Rs 20-30 for fair quality, while fine variety ruled unchanged.

Jagdish Rawal of B. Bhogilal and co, said on the back of improved domestic futures markets and expectation of higher demand from consumers and confectioners kept overall sentiment positive.

He said according to the traders, the quantity is higher than demand which may limit the upside.

Secondly, crushing season will also push up prices in coming days despite a slight delay due to the late and erratic monsoon this year.

Transporters have raised their freight charges by Rs 10-20 at local and producing level this week due to hike in fuel cost.

This also reflected on sugar prices.

Mills are continuously selling keeping supply ample in market.

Analyst said resale selling pressure in Naka trades for lifting commodity before due dates weighed on physical market but firm futures on expectation of higher demand from next week kept producers away from selling at lower rates. Producers are expecting fresh buying interest of other States to improve in Maharashtra coming days.

Since last week, about 5 – 6 rail rakes (each of 27,000 bags) were covered by Eastern buyers in Maharashtra.

In Vashi market, arrivals were about 68-70 truckloads (each of 100 bags of quintal each) and local dispatches were about 67-68 loads.

On Tuesday evening, about 17-18 mills offered tenders and sold 50,000 – 55,000 bags (each of 100 kg) to the local traders in the range of Rs 3,360-3,430 (Rs 3,350-3,440) for S-grade and Rs 3,450 - 3,550 (Rs 3,450 - 3,540) M-grade.

The Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,512 – Rs 3,571 (Rs 3,522 – Rs 3,575) and M-grade Rs 3,562- 3,691 (Rs 3,572- 3,721).

Naka delivery rates: S-grade Rs 3,450 -3,480 (Rs 3,450 -3,510) and M-grade Rs 3,500-3,600 (Rs 3,530-3,620).

Published on October 10, 2012
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