Mumbai, April 25:

Sugar markets re-opened on a bearish note on Thursday after being closed for four days.

On the Vashi wholesale market, spot prices declined by Rs 20 a quintal tracking weak Naka and mill tender rates.

Naka prices dropped by Rs 25-40 on slack demand and higher selling at upper level.

Mill tender rates dropped by Rs 20-30 tracking bearish sentiments. Sugar futures prices dip by Rs 21-22 till noon.

An observer said “ supplies exceed demand this year. The country has a higher production of about 240-245 lakh tonnes and imports of over 10 lakh tonnes while local demand is about 225-230 lakh tonnes. Closing stocks at the end of current year is expected at 70-75 lakh tonnes; so there is ample availability of sugar. In the export front also, world sugar prices are not in favour for shipments”.

In the Vashi market, arrivals were 64-65 truckloads (each of 100 bags) and local dispatches were also 58-60 loads.

On Wednesday evening, only 17-18 mills offered tenders and sold 45,000-50,000 bags at a lower price of Rs 2,900-3,000 (Rs 2,930-3,020) for S-grade and Rs 3,000-3,100 (Rs 3,010-3,110) for M-grade.

On the National Commodities and Derivatives Exchange, sugar May futures were at Rs 2,916 (Rs 2,934), June contracts were Rs 2,967 (Rs 2,989) and July were Rs 2,998 (Rs 3,019) till noon.

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,096-3,191 (Rs 3,116-3,191) and M-grade Rs 3,172-3,381 (Rs 3,192-3,401). Naka delivery rates: S-grade Rs 3,020-3,050 (Rs 3,060-3,090) and M-grade Rs 3,100-3,200 (Rs 3,125-3,225).