Mumbai, June 20:

Sugar prices in the Vashi wholesale market ruled steady on Thursday on slack physical demand.

Ample and continued supply from mills and bearish domestic futures market (June futures dropped further by Rs 41 to Rs 3,025 till noon) weighed on overall sentiment.

Prices were unchanged at naka and mill. It remained the same since last 15 days. Moral was weak due to the need based local demand in middle month, said sources.

Since January, physical sugar prices in the Vashi market declined by Rs 200-220 for S-grade and by Rs 160-170 for M-grade a quintal.

As festival seasons start from next month with Ramadan, sentiment will remain positive.

Second, talk of lower production next year will also support the sentiment. As of now, sugar stocks are sufficient to meet the local demand. The Vashi market currently carries more than 110-120 truckloads of inventories, sources said.

Arrivals in the Vashi market were 62-63 truck loads (each of 100 bags) and local despatches were about 60-61 loads. On Wednesday, merely 7-8 mills offered tenders and sold about 18,000-20,000 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 was down by Re 1 to Rs 3,057 (Rs 3,058), August was lower at Rs 3,107 (Rs 3,111) and September dropped by Rs 5 to Rs 3,157 (Rs 3,162) till noon.

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,064-3,141 (Rs 3,080-3,141) and M-grade Rs 3,186-3,341 (Rs 3,191-3,341).

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).