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Sugar prices ruled steady with a firm undertone on Tuesday on expectations of higher demand. The Bombay Sugar Merchants Association was closed on account of Maharashtra day; most godowns were shut too. On Monday evening millers saw brisk sales as stockists covered, on expectations of higher local demand.
The sentiment remained firm on expectations of a positive outcome on the exports front in a meeting to be held in Delhi soon. There were no loading and unloading of goods in the market.
Mr Jagdish Rawal of B. Bhogilal and co, said, the sentiment was steady as traders expect improvement in retail demand in the beginning of the month.
Producers are refusing to sell at lower prices on hopes of the government's allowing more exports considering higher output. The Government has already allowed 30 lakh tonnes of exports this year, in three tranches of 10 lakh tonnes.
Sugar industry is demanding permission for more exports.
Even the Agriculture Ministry is supporting the demand. In domestic market till now there is ample supply to meet the demand.
Sources said prices at the Vashi terminal market higher by Rs 5 for fine variety; lower by Rs 5 for normal variety in ready and naka delivery levels.
Mill tender rates were expected higher by Rs 5-8 on expectation of higher demand in beginning of month.
Hope of improvement in bulk consumer demands due to higher temperature is expected to keep overall sentiment firm. Millers are not very keen to huge stocks expecting higher prices.
According to the Agriculture Ministry, sugarcane has been planted in 46.40 lakh hectares compared to 44.00 lakh hectares last year till April 27. It is 2.40 lakh hectares more than last year. Normal area for sugarcane crop is 47.45 lakh hectares.
In world market, on Monday August -12 futures was down by $2.20 to $574.60 ($576.80) and October-12 futures decline by $3.40 to $567.40 ($570.80) a tonne.
On Monday evening about 18-20 mills offered tenders and sold 78,000-80,000 bags in range of Rs 2,775-2,890 (Rs 2,780-2,880) for S-grade and Rs 2,880-2,970 (Rs 2,880-2,960) for M-grade.
Nominal spot rates : S-grade Rs 2,905-2,960 (Rs 2,910-2,955) and M-grade Rs 3,010-3,120 (Rs 3,002-3,111).
Naka rates : S-grade Rs 2,865 -2,920 (Rs 2,865-2,910) and M-grade Rs 2,970-3,055 (Rs 2,960-3,050).
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