Sugar prices at Vashi market rule steady with thin volatility on Monday. Spot rates improve by Rs.25 for S-grade premium quality while M-grade fine variety decline by Rs.10 on higher selling. Naka prices by Rs.10 – Rs.25 on expectation of higher selling by reseller this week. Mill tender rates show mixed trend. Market trend will take lead from announcement of new quarterly free sale quota and progress of monsoon. Sentiment in physical market was steady tracking firmness in futures market said traders.
Mr. Mukesh Kuwadia Secretary of Bombay Sugar Merchants Association told Businessline “Overall sentiment of the market is positive but futures trend will be depend upon the announcement of new quarterly free sale quota for July to September and progress of monsoon as it is already delayed. Further delay may lead to fear about the crop. So far more than 51 lakh hectors area has been covered under sugarcane but lack of rain may lead to lower yield and production”.
Mr. Jagdish Rawal a wholesaler said local demand is need based due to month end time and there is no noticeable active buying from neighboring states in Maharashtra since long as prices are ruling at par with Maharashtra in other producing centers. Traders are bullish about higher demand in coming days as Ramadan starts from July and crushing season got over. Millers are not very keen to sell at lower rates as they are not under pressure. Mills have continuously sold commodity this month.
Traders said Government has declared total 46 lakh tones of free sale quota for the quarter April- June 2012. Next quarterly free sale quota is expected slightly higher due to start of festival seasons in India. Sugar production this year expected at 260 lakh tonnes compare to 245 lakh tonnes last year. For next season 2012 – 2013 initial estimate is more than 260 lakh tonnes but it will depend upon the progress of rain.
In international markets, sugar futures closed sharply lower last week on eased supply. On Friday, August -12 futures closed lower by $21.30 to $585.80 ($607.10) and October-12 futures down by $21.80 to $547.30 ($569.10) per tones.
In Vashi market arrivals were 50 - 52 truck loads and local dispatches were 50-52 truck loads. On Saturday 10- 11 mills offer tenders and sold about 45,000 – 47,000 bags to local traders in the range of Rs. 2,880-2,930 (Rs 2,860-2,930) for S-grade and Rs 2,960-3,040 (Rs 2,960-3,030) for M-grade.
Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,972-3,055 (Rs 2,972-3,026) and M-grade Rs 3,052- 3,181 (Rs 3,053-3,191). Naka delivery rates: S-grade Rs 2,935 -2,970 (Rs 2,960-2,980) and M-grade Rs 3,030-3,080 (Rs 3,020-3,090).