Sugar prices rule steady with minor changes on Tuesday on lack of demand. Government previous day reduce the non-levy quota released for the month of December, 2012 to March, 2013 to 66.50 lakh tones instead of 68.00 lakh tones but it fails to affect the sentiments in physical markets. Domestic futures market has reacted positively by showing improvement of Rs10-Rs12 till noon said sources.
In spot price for S-grade were up by Rs10 while M-grade ruled steady. Naka rates were unchanged. Mill tender rates were up by Rs10 for S-grade and down by Rs20 for M-grade as mills sold old stock at lower rates. Volume was higher upper level compare to previous day as stockiest slowly started covering before start of new month on expectation of higher demand.
Sources said “Government has reduced the non levy quota for December – March by 1.50 lakh tones to 66.50 lakh tones but that is also sufficient to meet the domestic demand. After Diwali and Christmas festivals retail and bulk consumer demand cooled down sharply. Other side sugar production this year is also expected higher than local demand. Currently sugar production is on pick level and producers are continuously selling in local markets. On Export front there is no much scope for shipment from India as world prices are ruling lower near $500 a ton”.
On Tuesday in Vashi market arrivals were higher at 63-64 truck loads (Each of 100 bags) and local dispatches were 61-62 truck loads. On Monday evening 18-20 mills offered tenders and sold about 68,000 – 70,000 (Each of 100 kgs) bags in the range of Rs3,110 - 3,170 (Rs3,100-3,170) for S-grade and Rs 3,210 - 3,280 (Rs3,230 - 3,280) for M-grade. In World market March-13 futures closed higher by $7.70 to $494.40 ($486.70) and May-13 futures up by $6.10 to $505.80 ($499.70) a tone.
On National Commodities and Derivatives Exchange sugar prices for February-13 futures further was up Rs3203 (Rs 3191), March-13 was Rs3248 (Rs 3232) and April was higher at Rs3300 (Rs3290) till noon.
Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,246– Rs 3,321 (Rs 3,236 – Rs 3,321) and M-grade Rs 3,316 - 3,452 (Rs 3,316- 3,452). Naka delivery rates were: S-grade Rs 3,200 -3,250 (Rs 3,200 -3,250) and M-grade Rs 3,250-3,400 (Rs 3,250-3,400).