Commodities

Sugar rules steady as traders buy more

Our Correspondent Mumbai | Updated on January 10, 2012 Published on January 10, 2012

BL11_SUGAR

Despite good arrivals on the Vashi wholesale market, sugar prices ruled steady on Tuesday. The undertone of the market was firm as more millers offered tenders and stockists came with fresh buying orders. The volume increased compared with the previous day . On the spot, the S-grade sugar went up by Rs 4, while M-grade ruled unchanged. Naka and tender rates were unchanged, said market sources. All-round demand was reported for good quality sugar.

A spokesman of B. Bhogilal and Co said that with more producers coming forward with selling offers, buyers also response positively.. About one lakh bags (each 100 kgs) sugar were sold by Maharashtra's mills to local traders on Monday, compared with 45,000 bags on Saturday. Traders think sugar prices are currently ruling at the bottom level considering cost of production after rise in cane price.

A wholesaler said the absence of any worthwhile moving factors and sufficient ready stocks with mills will keep prices under check. Crushing season is on and a higher production has been projected for the current year. Cold weather condition across the country kept demand need-based.

Arrivals at the Vashi market were 54-55 truckloads and local dispatches were around 51-52 truckloads. On Monday, 20-22 mills offered tenders and sold more than 1 lakh bags sugar in the range of Rs 2,740-2,820 (Rs 2,740-2820) for S-grade and Rs 2,830-2,920 (Rs 2,830-2,900) for M-grade.

The Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,891-2,991 (Rs 2,891-2,995) and M-grade Rs 2,981- 3,092 (Rs 2,981-3,092).

Naka delivery rates: S-grade Rs 2,850 - 2,900(Rs 2,850 - 2,900) and M - grade Rs 2,940-3,020 (Rs 2,940-3,020).

Published on January 10, 2012
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