Mumbai, June 19:

Sugar prices ruled steady on Wednesday as ample supply from mills continued and offtake by retailers was routine.

Barring bold variety, M-grade sold Rs 10-20 higher in spot prices, naka and mill level remained unchanged in the absence of any firm-supportive cues.

In the futures market, bearish trend continued for the second day with prices falling more than Rs 40 till noon on Wednesday.

Sources said the moral was steady on expectation of surge in demand from next month.

Festival season will start from July-August and will end in November -December.

New crushing season is four months away, hence, sentiment will remain positive in the market.

But with higher production this year and huge carryover stocks prices were under control.

Producers are still continuously selling the commodity to ease the inventory burden.

The Vashi wholesale market currently carries more than 110-115 truckloads of inventories, sources said.

Arrivals were 63-64 truck-loads (each of 100 bags) and local dispatches were about 60-61 loads.

On Tuesday, 9-10 mills offered tenders and sold about 24,000-25,000 bags to local traders 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 extended lose further by Rs 41 to Rs 3,064 (Rs 3,105), August down by Rs 37 to Rs 3,120 (Rs 3,157) and September dropped by Rs 34 to Rs 3,165 (Rs 3,199) till noon.

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,080-3,141 (Rs 3,080-3,141) and M-grade Rs 3,191-3,341 (Rs 3,172-3,331).

Naka delivery rates were: S-grade Rs 3,020-3,080 (Rs 3,020-3,080) and M-grade Rs 3,140-3,220 (Rs 3,140-3,220).