Mumbai, June 17:

Sugar prices in the futures market gained on hopes that States will soon float a tender to buy the commodity for supply through ration shops. However, mill tender rates remained unchanged despite sentiments improving in the market.

In the physical market, S-grade improved by Rs 7 a quintal at the lower end and declined by Rs 4 at the higher end. M-grade lost Rs 20 at the lower end, while upper side gained by Rs 5.

Naka rates improved by Rs 10-20 on higher demand and lower sales of the bold-fine variety. Sources said that despite a positive outlook, mill tender rates were unchanged as local demand eased.

Talk in the futures market that prices were higher by Rs 15 till noon, taking the rise to Rs 35 a quintal in the last two sessions. Sources said that the physical volume was lower compared with Saturday due to heavy rain in Mumbai.

Local retail demand remained need based and routine but continuous supply from producers in the absence of neighbouring States buying keep the price under check. In the Vashi market, arrivals were 64-65 truckloads (each 100 bags) and local despatches were 60-62 loads. On Saturday, only 8-10 mills offered tenders and sold about 28,000-30,000 bags at Rs 2,950-3,010 (Rs 2,950-3,010) for S-grade and Rs 3,020-3,120 (Rs 3,020-3,120) for M-grade.

On the National Commodities and Derivatives Exchange, sugar July futures were up by Rs 15 to Rs 3,115 (Rs 3,100), August was higher by Rs 17 to Rs 3,165 (Rs 3,148) and September increased by Rs 15 to Rs 3,204 (Rs 3,189) till noon.

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,069-3,131 (Rs 3,062-3,135) and M-grade Rs 3,172-3,336 (Rs 3,192-3,331). Naka delivery rates were: S-grade Rs 3,020-3,080 (Rs 3,020-3,070) and M-grade Rs 3,140-3,220 (Rs 3,130-3,200).