Indian sugar mills association

Slack demand keeps sugar subdued

Date:	04 Jun 2013

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	2312

Pdf:
Nlink:

Mumbai, June 3: Sugar prices at the Vashi wholesale market ruled steady on Monday. Spot prices dropped by Rs 10-Rs 15 for selected varieties as local demand was less than expected. Naka and mill tender rates were unchanged on routine volume. Prices on domestic futures markets jumped by Rs 28 for July on expectation of higher festival demand in the coming days. Moral was positive ahead of the monsoon. A Vashi-based wholesaler said, “despite the start of the new month, local demand remained less than expected. Prices in other main production centres continued to rule on par with Maharashtra, forcing upcountry buyers to source the commodity from nearby States. Buying from neighbouring States has been missing in Maharashtra since Diwali. Higher production this year made State-level mills offload sugar in local markets, which resulted in ample supply, while local demand remained the same.” May spot prices had dropped by Rs 30 a quintal. The Vashi market continuously carries 100-110 truckloads of inventory, sources said. In Vashi, market arrivals were about 63-64 truck loads (each of 100 bags) and local dispatches were around 61-62 truck loads. On Saturday evening, 10-12 mills offered tenders and sold 34,000-35,000 bags to local traders at Rs 2,920- Rs 2,990 (Rs.2,920-Rs 2,990) for S-grade and Rs 3,000-Rs 3,090 (Rs 3,010- Rs 3,090) for M-grade. On the National Commodities and Derivatives Exchange, sugar July -13 futures was higher at Rs 3,088 (Rs 3,060), August closed at Rs 3,126 (Rs 3,111) and September closed at Rs 3,167 (Rs 3,158). Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,046– Rs 3,151 (Rs 3,070– Rs 3,151) and M-grade Rs 3,162 - 3,341 (Rs 3,172- 3,351). Naka delivery rates: S-grade Rs 3,020 -3,060 (Rs 3,020-3,060) and M-grade Rs 3,100-3,200 (Rs 3,100-3,200).

News

Navigation