Sugar rules steady despite selling pressure

Sugar prices on the spot market and at mills level on the Vashi wholesale market ruled steady despite increased selling pressure at naka level on Thursday. Mill tender rates were mostly unchanged on support from local demand. However, a few needy mills sold sugar Rs 5 lower. Need-based local demand in physical market forced resellers to offload at reduced rates. Naka rates were down by Rs 10-15 a quintal. Freight rates were unchanged.

A spokesman for the Bombay Sugar Merchants Association said: “Overall sentiment in the physical market was not weak as current demand is thin/lower due to vacation, but traders are expecting demand will increase in the next couple of days. Mills are getting good response to their sale offer. Stockists come forward with fresh commitments for inventory building. From next month crushing season will be over and the supply will depend on the producers.

In Vashi - Mumbai market, arrivals were about 50-52 truck loads (each of 100 bags) and local dispatches were lower at 46-47 truck loads. About 24-25 mills have sold about 65,000-70,000 bags (100 kg each) sugar to local stockist in the range of Rs 2,630-Rs 2,670 for S grade and Rs 2,685-Rs 2,755 for M grade, Rs 5 lower than the previous day.

Bombay Sugar Merchants Association' spot rates: S-grade: Rs 2760-2,790 (Rs 2,760-2,790) and M-grade: Rs 2,801-2,891 (Rs 2,801-2,900).

Naka delivery rates: S-grade: Rs 2,700-2,740 (Rs 2,720-2,750) and M-grade: Rs 2,760-2,860 (Rs 2770-2,860).