November 20, 2012:
Sugar prices at Vashi market decline by Rs 10 – Rs 15 on Tuesday. Tracking volatile and weak domestic futures prices stockiest kept away from fresh inventory buying. Arrivals and local dispatches were higher as market was closed for previous two consecutive days. Other side in world market sugar prices shot up by $17 to a six week high but the effect was not seen on domestic market due to continuous and sufficient supply from mills. Market sentiment was steady but under current was weak sources said.
Mr. Jagdish Rawal of B. Bhogilal and co., said prices remain unchanged for routine variety while some quality sold Rs10- Rs 15 lower due to sufficient supply and arrivals in the market. Traders expect local demand could be ease coming days due to month end time. Other side mills have to complete free sale quota before month end hence there is ample supply from producers. Business activities back on track in the market after the cremation of Shiv Sena Chief Bal Thackray. Market was totally closed on Sunday and Monday. Volume was higher.
Analyst said Indian sugar mills association (ISMA) has paged sugar production 2012-2013 season till 15{+t}{+h} November higher by 27% to 9.85 lakh tonnes compare to 7.86 lakh tonnes. Higher sugar production figures weigh on futures markets which drop by more than Rs36 for Dec futures till noon. But the ongoing of farmers for cane price and payment in Maharashtra will support the sentiments. As Diwali festival is over and due to month end time physical demands is expected to be lower coming days.
In World market sugar futures jumped to a six-week high on a short-covering on Monday, the first trading day of the fourth quarter following a sizeable delivery and support from the weak U.S. dollar. The weak greenback can attract buying by investors holding other currencies.
In world market white sugar March-13 futures closed higher at $526.30 ($509.30) and May-12 shot up to $532.50 ($515.50) a ton. On National Commodities and Derivatives Exchange sugar December-12 futures was down by Rs36 to Rs 3300 (Rs 3336), January contracts was Rs3327 (Rs 3358) and February was lower by Rs26 to Rs 3341 (Rs 3367).
In Vashi spot market loading – unloading activities were higher due to previous two days closed. Arrivals in the Vashi market were 72-74 truck loads (Each of 100 bags) and local dispatches were about 69 – 70 truck loads. On Monday evening 14-15 mills offered tenders and sold about 58,000 - 60,000 bags (Each of 100 kgs) to the local traders in the range of Rs 3,340-3,400 (Rs 3,330-3,390) for S-grade and Rs 3,390 - 3,520 (Rs 3,400 - 3,520) for M-grade.
Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,472– Rs 3,542 (Rs 3,480 – Rs 3,550) and M-grade Rs 3,502 - 3,721 (Rs 3,510- 3,725). Naka delivery rates: S-grade Rs 3,430 -3,470 (Rs 3,430 -3,480) and M-grade Rs 3,465-3,650 (Rs 3,480-3,650).