Sugar rules flat on limited demand

CK Jani Mumbai | Updated on August 05, 2020

Local offtake remains need-based

The sugar market ruled flat at the mill and naka level on limited demand amid selling pressure among producers. At the Vashi market, prices were up by ₹10-15 for S-grade. M-grade was steady.

Despite the start of the festival season, local offtake remained need-based. Surplus stock with producers and sufficient quota for the month at 20.50 lakh tonnes indicates easy availability of the commodity. Morale was steady, said sources.

Sources said mills are currently carrying over 150 lakh tonnes surplus inventory after factoring in projected exports of 60 lakh tonnes for the sugar year ending September 2020.

On the export front, Brazilian data showed record shipments during July, which may have an impact on the Indian shipment in coming months. As per the Brazilian Ministry of Economy’s department of foreign trade, the world’s largest producer has exported a total of 34 lakh tonnes of sugar and molasses in July 2020, compared to 18 lakh tonnes in July 2019, registering 91 per cent rise.

Further, on the domestic front, the uncertainty over creating a buffer of 40 lakh tonnes also added pressure on market.

Arrivals at Vashi were 32-34 and truck loads (each of 10 tonnes) and local dispatches were 32-33 truckloads. Inventories at Vashi went up to 89-90 truckloads. Freight rates were stable at ₹80-100 per bag.

On Tuesday evening 17-18 mills offered tenders and sold about 30,000-32,000 bags at ₹3,150-3,210 (₹3,150-3,210) for S-grade and ₹3,250-3,310 (₹3,240-3,310) for M-grade.

At the Bombay Sugar Merchants’ Association, the spot rates were (₹/quintal): S-grade ₹3,310 – ₹3,392 (₹3,296 - ₹3,382) and M-grade ₹3,420 – ₹3,590 (₹3,420 - ₹3,590).

Naka delivery rates were (₹/quintal): S-grade ₹3,260 - 3,320 (₹3,260 – ₹3,320) and M-grade ₹3,380 – ₹3,430 (₹3,380 – ₹3,430) .

Published on August 05, 2020

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