Sugar prices at the Vashi market continued to head north on Wednesday on strong sentiment and expected tight supply as the crushing season is almost over at the national level. Markets took a breather and ruled steady the previous day after a continuous rise of Rs 150 this month. Prices in the physical market shot up by Rs 30-50. Naka rates were up by same margin, tracking a jump of Rs 10-30 in mill tender rates. In the spot market, despite routine local demand and profit-booking led weak domestic futures market, sentiment remained firm, said market sources.

Mr Jagdish Rawal, a wholesaler, told Business Line : “Prices headed north as millers are not very eager to sell in a big way, expecting higher prices in the coming festival days. Domestic demand is sure to improve during the Ramzan, Raksha Bandhan, Janmashtami and Ganeshotsav festivals, to be celebrated during July-September. Maharashtra is also expected to see improved demand from neighbouring States such as Gujarat, Rajasthan and Madhya Pradesh. As prices are ruling below mill parity, sentiment will remain bullish. There are about 90-100 truckloads lying as inventory in the Vashi market; hence, there is ample supply of the commodity to feed festival demand. Mills are also selling regularly, with steady price rise,” he said.

In the international markets, white sugar futures in London ended up, hitting a three-and-a-half month high as brisk consumer buying and lingering problems in top growers Brazil and India stoked the sweetener’s steady advance. Prices rallied since the start of June, after heavy rainfall in Brazil heightened shortage concerns.

International sugar futures prices showed a mixed trend on Wednesday. August -12 futures closed higher by $3.90 to $650.00 ($646.10) and an October-12 future was down by $1.20 to $608.30 ($609.50) per tonne. In the domestic market sugar futures showed a weak trend, losing Rs 40 till noon on profit-booking. A Europe-based sugar broker said: “This is a ‘weather’ market, and what it does next will depend on the rains in Brazil and India.”

In Vashi market, arrivals were 50-52 truckloads and local dispatches were 51-52 truckloads. Freight rates ruled unchanged at higher level. On Tuesday evening, 15-16 mills offered tenders and sold about 54,000-55,000 bags (each, 100 kg) to the local stockists at the higher range of Rs 3,060-3,110 (Rs 3,030-3,100) for S-grade and Rs 3,120-3,170 (Rs 3,090-3,150) for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,160-3,221 (Rs 3,102 -3,235) and M-grade Rs 3,221- 3,331 (Rs 3,201- 3,301). Naka delivery rates: S-grade Rs 3,150 -3,170 (Rs 3,100 -3,130) and M-grade Rs 3,200-3,270 (Rs 3,160-3,240).

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