Mumbai, June 25:

Sugar prices on the Vashi wholesale market extended losses by Rs 5-7 a quintal on Tuesday as demand eased and supply improved.

In naka trade, prices were weak by Rs 4-5 as mill tender rates dropped by Rs 5-10. Continuous selling by mills in the local market in the absence of neighbouring States buying has resulted in building up of over 110 truckloads of inventories in Vashi market.

With routine activities, the sentiment remained weak, said traders.

In the domestic futures market, July futures dropped below Rs 3,000, the lowest since May 8. This supported the bearish trend.

Due to higher production this year, sugar prices have been ruling weak in the last three quarters. Sugar prices in the Vashi market have declined by Rs 200-220 for S-grade and by Rs 160-170 for M-grade since January on ample supply.

Procurement by the State Government will provide some relief to the producers who are still facing inventory pressure.

Arrivals in the Vashi market were 64-65 truckloads (each 100 bags) and local dispatches were about 61-62 loads. On Monday, 14-15 mills offered tenders and sold about 38,000-40,000 bags to local traders at Rs 2,920-2,980 (Rs 2,930-Rs 2,990) for S-grade and Rs 3,000-Rs 3,090 (Rs 3,000- 3,090) for M-grade.

On National Commodities and Derivatives Exchange, July futures declined by Rs 10 to Rs 3,000 (Rs 3,011), August down by Rs 10 to Rs 3,053(Rs 3,063) and September dropped by Rs 8 to Rs 3,103 (Rs 3,111) till noon.

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,062-3,131 (Rs 3,062-3,131) and M-grade Rs 3,162-3,311 (Rs 3,172-3,311).

Naka delivery rates were: S-grade Rs 3,010 -3,060 (Rs 3,010-3,060) and M-grade Rs 3,100-3,180 (Rs 3,100-3,180).