Sugar gains on firm futures, export move

| | Updated on: Apr 19, 2012
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Sugar prices on the Vashi wholesale market increased by Rs 15-20 a quintal on Thursday, tracking firm futures market. The market also drew support from expectations that The Government may decide to allow exports of an additional 10 lakh tonnes in next the Empowere Group of Ministers' meeting on April 25. Demand in physical markets remained steady due to mid- month buying. Volumes improved at upper level on fresh buying support form traders.

Mr Mukesh Kuwadia, Secretary of the Bombay Sugar Merchants Association (BSMA), said: “In spot, the sentiment improved in line with a firm futures market.”

But world sugar prices that are going through a bearish phase may slow the speed of Indian exports. Till Wednesday, white sugar futures prices have dropped $22-24 a tonne, making it a loss of over $50 this month. A wholesaler said increase in spot prices – S-grade by Rs 10 and M-grade by Rs 20 – due to higher demand for fine quality. Naka rates for both varieties shot up by Rs 20-30, tracking higher demand at mill level. On Wednesday, about 75,000-80,000 bags, including one rail rake's, were sold by Maharashtra's mills at a higher price of Rs 10-15. Local retail demand was routine. At the Vashi market, arrivals were 52-53 truckloads and local dispatches were 48-50 truckloads. On Wednesday evening, about 14-15 mills offered tenders and sold 75,000-80,000 bags in the range of Rs 2,770-2,830 (Rs 2,770-2,820) for S-grade and Rs 2,870-2,940 (Rs 2,870-2,930) for M-grade.

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,906-2,961 (Rs 2,882-2,951) and M-grade Rs 3,038-3,121 (Rs 3,021-3,111).

Naka delivery rates: S-grade Rs 2,860 -2,900 (Rs 2,840-2,880) and M-grade Rs 2,960-3,040 (Rs 2,930-3,030).

Published on March 12, 2018

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