Commodities

Sugar prices rule firm on fresh demand

Our Correspondent Mumbai | Updated on May 11, 2011 Published on May 11, 2011

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Spot sugar prices at Vashi market, on Wednesday, witnessed mixed trend, tracking firm futures market and need-based demand in the spot market. Spot level S grade sugar was up by Rs 10 while M grade was unchanged. In naka delivery, good quality M grade rose by Rs 5-7 per quintal while other quality rule unchanged. Overall, sentiment in physical market was firm in line with the upward move in domestic futures price and sharp recovery in the international market. Mill tender rates ruled unchanged as producers were getting good response for their tender, said traders.

Mr Jagdish Rawal, Joint Secretary of Bombay Sugar Merchants Association, said: “At mill level, fresh demands from local and upcountry buyers supported the firm sentiment. In the physical market, due to vacation, hand to mouth volume kept morale steady. Mills are continuously selling at current price level keeping easy supply in market. Good quality sugar was in demand. Freight rates ruled steady. From January 11, the Indian sugar market has continuously, , witnessed bearish or steady trends in first fortnight of each month. With the end of the crushing season next month, sugar prices are expected to bottom out and any supportive reason may fuel the price.

In the international market, sugar price rebounded from the recent low on expectations that China's sugar import will be higher at about 27/28 lakh tonnes compared with 20 lakh tonnes last year. In the London sugar futures, prices shot up by $19 to $603 a tonne on concerns that production in top producer Brazil may fall short of estimates. In domestic futures market, sugar price also rebounded. Sentiment in physical market firmed up tracking futures market, he added.

In Vashi - Mumbai market with nominal demand, steady volume kept bulk consumers away from fresh buying. Arrivals were higher than dispatches. Most of the mills keep tender offer open. About 26-27 mills have sold about 75,000- 80,000 bags (100 kg each) sugar to local / state level stockiest in the range of Rs 2,635/Rs 2,675 for S grade and Rs 2,690/Rs 2,760 for M grade. Arrivals in the market were about 47 /48 truck loads (each of 100 bags) and local dispatches were lower at 43/44 truck loads.

Bombay Sugar Merchants Association sugar rates: Spot rates: S grade Rs 2,760-2,790 (Rs 2,756-2,781) and M grade Rs 2,801-2,900 (Rs 2,801-2,901).

Naka delivery rates: S grade Rs 2,720-2,750 (Rs 2,720-2,750) and M grade was Rs 2,770-2,860 (Rs 2,760 -2,865).

Published on May 11, 2011
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