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Spot sugar prices at the Vashi market hit a new high on Thursday as traders bet on strong exports growth and higher domestic demand in the festival season that started this month. Spot rates increase by Rs 10-20 while naka prices went up by Rs 10 for S-grade and Rs 30 for M-grade. Despite usual demand supply and volume sentiments remained bullish, tracking firm mill tender rates, which rose further by Rs 10-15.
According to market sources, strong sentiment at the upper level pushed up spot and naka prices.
Rebound in domestic sugar futures also supported the trend. World sugar prices are bullish, making room for Indian exports. Millers are not eager to sell expecting higher prices on demand support. Currently at Vashi markets supply and stock of the commodity are ample due to regular selling by mills.
Exports
Indian exports have picked up ahead of Ramzan and realisations for millers, aided by a weaker rupee, are expected to be better. Indian millers have so far exported 28 lakh tonnes in the current 2011-12 season year (October- September). Total shipments this year are estimates around 35 lakh tonnes.
Delay in harvesting in Australia and Brazil due to heavy rains may help Indian exporters grab a larger market share. There is more demand for raw sugar compared to white or refined sugar. B West Asian buyers prefer raw sugar. Raw sugar is exported mainly from Tamil Nadu, where crushing is at the final stage.
At the Vashi market, arrivals were 52-53 truckloads and local dispatches were 51-52 truckloads. Freight rates ruled unchanged. On Wednesday evening about 15-16 mills offered tender and sold about 48,000-50,000 bags (each of 100 kg) to the local stockists in the range of Rs 3,075-3,130 (Rs 3,060-3,110) for S-grade and Rs 3,130-3,180 (Rs 3,120-3,170) for M-grade.
Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,171-3,221 (Rs 3,160 -3,221) and M-grade Rs 3,240- 3,331 (Rs 3,221- 3,331).
Naka delivery rates: S-grade Rs 3,140 -3,180 (Rs 3,150 -3,170) and M-grade Rs 3,200-3,300 (Rs 3,200-3,270).
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