Commodities

Sugar mills under pressure to sell

Our Correspondent Mumbai | Updated on March 22, 2013 Published on March 22, 2013

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Sugar prices extended losses on Friday on continuous selling by mills at lower rates due to financial year ending next week. Need-based local demand forced producers to offload the commodity to ease inventory pressure on them. On the Vashi wholesale spot market, prices dropped by Rs 10-20 a quintal. Naka rates declined by Rs 5-10 while mill tender rates cooled by Rs 10-20. A wholesaler said: “In absence of any positive cues and continuous supply from mills kept stock position more than sufficient at market level. Bearish futures market which dropped by more than Rs 150 this month for April – May pulled down physical prices by Rs 60 till now. Upcountry buying is totally lacking in Maharashtra since long as prices in other producing centres are at par with Maharashtra’s parity. Hence local producers are forced to upload in State markets”.

On the NCDEX, sugar futures ruled flat after previous four day’s sharp fall. April futures was Rs 2,964 , May contracts was Rs 3,009 (Rs 3,005) and June Rs 3,050 (Rs 3,051) till noon.In Vashi market, arrivals were 63-64 truckloads (each of 100 bags) and local dispatches were 62-63 loads. On Thursday evening, merely 11-12 mills sold about 28,000-30,000 bags to local traders at Rs 2,980-3,020 (Rs 2,980-3,030) for S-grade and Rs 3,070-3,160 (Rs 3,070-3,180) for M-grade.

The Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,132-3,211 (Rs 3,136-3,221) and M-grade Rs 3,202-3,371 (Rs 3,216- 3,391).

Naka delivery rates: S-grade Rs 3,070-3,100 (Rs 3,080-3,105) and M-grade Rs 3,125-3,250 (Rs 3,130-3,260).

Published on March 22, 2013
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