Indian sugar mills association

Sugar July futures top Rs 31,000 a quintal

Date:	07 Jun 2013

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	2321

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Mumbai, June 6: Sugar prices on the Vashi wholesale spot market weakened by Rs 5-20 a quintal on Thursday. Continuous selling by producers and expectations of slowing down in retail offtake after June 10 kept naka and mill tender rates unchanged for the third consecutive day. Volumes were routine. Sufficient inventory with traders has kept them away from bulk buying. In the domestic futures market, July contracts gained further by Rs 16 and topped Rs 3,100, marking a highest point since May 23. The moral is steady in the spot but firm on the futures market, an observer said. Jagdish Rawal of B. Bhogilal and Co said, “Due to higher production, ample supply in the domestic market, and sufficient inventory with producers, activities in the market have been routine since the start of the year. World sugar prices are ruling lower and not in India’s favour for exports. So, ample supply in domestic markets is putting pressure on prices.” He further said, “Though the crushing season is over, the prospect for the new season is expected to be positive for markets due to chances of lower sugar production. Till December, the market may see firm sentiment with thin volatility.” Traders believes that carryover stocks for the next season year will be around 90-95 lakh tonnes at the end of September – 13. In the Vashi market, arrivals continued at about 64-65 truckloads (each 100 bags) and local dispatches were around 63-64 truck loads. On Wednesday evening, about 12-13 mills offered tenders and sold 34,000-35,000 bags to local traders at a steady price range Rs 2,930-2,990 (Rs 2,930-2,990) for S-grade and Rs 3,000-3,090 (Rs 3,000-3,090) for M-grade. On the National Commodities and Derivatives Exchange, sugar July -13 futures was further up by Rs16 to Rs 3,108 (Rs 3,092), August was higher by Rs16 to Rs 3,162 (Rs 3,146) and September gained by Rs14 to Rs 3,210 (Rs 3,196). The Bombay Sugar Merchants Association's spot rates were (Rs/quintal): S-grade Rs 3,070–3,140 (Rs 3,072– 3,145) and M-grade Rs 3,172-3,321 (Rs 3,172-3,346). Naka delivery rates: S-grade Rs 3,030-3,070 (Rs 3,030-3,070) and M-grade Rs 3,100-3,200 (Rs 3,100-3,200).

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