Commodities

Sugar turns sour on slack demand

Mumbai | Updated on July 18, 2012 Published on July 18, 2012

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Sugar prices at mill level continued to remain firm while on Vashi spot market and naka level it saw a bearish trend on Wednesday. Maharashtra’s mills sold sugar at Rs 20 a quintal higher despite an ease in demand. After sharp rise of Rs 350-400 in the last 15 days, sugar declined, due to profit booking, by Rs 10-20 in naka rates. In physical market eased local demand in middle month pulled down prices by Rs 30-40 a quintal. In first two days this week sugar prices have shot up by Rs 200 and hence stockists preferred to keep away. Volume was routine and morale was cautious on fear of any government steps – intervention to curb price rise.

Mr Jagdish Rawal, a wholesaler, told Business Line, “strong fear of government’s steps any time to curb essential commodities prices and eased local demand in middle of the month have led to profit booking and resale selling pressure over physical market. Hence prices at spot level declined sharply due to lower fresh buying. Sugar prices are ruling at record levelalong with other essential commodities. On Tuesday, in Vashi market M-grade prices touched a new high of Rs 3,511”.

In Vashi market, arrivals were 53-54 truck loads and local dispatches were lower at 49-50 truck loads. On Tuesday, only 15-16 mills offered tender and sold 45,000 – 50,000 bags (of 100 kg each) to the local traders in the range of Rs 3,220-3,300 (Rs 3,200-3,280) for S-grade and Rs 3,340-3,440 (Rs 3,320-3,400) for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,352-3,411 (Rs 3,376 -3,411) and M-grade Rs 3,391- 3,471 (Rs 3,430- 3,511).

Naka delivery rates: S-grade Rs 3,340 -3,380 (Rs 3,350 -3,390) and M-grade Rs 3,370-3,430 (Rs 3,390-3,450).

Published on July 18, 2012
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