Sugar slips as mills hold back produce

Our Correspondent Mumbai | Updated on May 28, 2013 Published on May 28, 2013


Sugar prices declined by Rs 10 a quintal in spot market for selected variety while in naka trade it remained almost steady tracking need-based demand at producing level.

Mill tender rates were unchanged as producers held back their produce to avoid losses. Prices are already reeling below cost of production and millers are not very keen to sell at lower prices, said observer.

A Vashi-based wholesaler said, “due to month-end, local retail demand is very low which kept overall volume and price trend thin and range-bound. Some needy producers sold the commodity at reduced rates. Retailer’s demand is also low which led to building up of fresh inventory in the market.

Currently Vashi market carries about 80-90 truck load of stocks which is sufficient to meet the demand.”

In Vashi market for the fourth consecutive day, arrivals proved higher than local demand. About 61-62 truckloads (of 100 bags each) arrived on Tuesday while local dispatches were around 55-56 loads.

On Monday evening, about 12-13 mills offered tenders and sold 34,000-35,000 bags at a steady level of Rs 2,930-3,010 (Rs 2,930-3,010) for S-grade and Rs 3,020-3,100 (Rs 3,030-3,100) for M-grade.

On the NCDEX, sugar June futures dropped by Rs 13 to Rs 3,007 , July by Rs 20 to Rs 3,055 and August by Rs 27 to Rs 3,109 till noon.

Bombay Sugar Merchants Association's spot rates were: S grade: Rs 3,082-3,160 (Rs 3,082-3,170) and M-grade: Rs 3,152-3,371 (Rs 3,152-3,381).

Naka delivery rates: S grade: Rs 3,040-3,080 (Rs 3,040-3,070) and M grade: Rs 3,100-3,190 (Rs 3,100-3,200).

Published on May 28, 2013
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