Mumbai, July 1:

Sugar prices on the Vashi market ruled steady while on futures it increased on expectation of drop in sugar production next year and talk of an export deal.

Naka and mill tender rates were unchanged due to routine demand and ample supply.

Retailers demand is expected to rise from weekend. Morale was positive, said sources.

Sources said “in physical market stockists sold fair – fine quality M-grade at Rs 2-5 lower a quintal – higher as retailers demand remained routine.

On the other hand, continuous selling by producers in local market in absence of upcountry demand kept supply more than sufficient.

Due to sufficient stocks held with stockists they also kept away from fresh bulk buying. Though for the beginning of the month when consumers – retailers demand generally rises, traders expect volumes to from this weekend.”

Arrivals in the Vashi market were about 64-65 truck loads (of 100 bags each) on Monday while local dispatches were limited to 62-63 truck loads.

On Saturday evening, merely 7-8 mills offered tenders and sold about hardly 6,000-7,000 bags at a steady price of Rs 2,920-2,980 for S-grade and Rs 3,000-3,090 for M-grade.

On the NCDEX, sugar August futures was up by Rs 15 to Rs 3,060, September by Rs 14 to Rs 3,105 and October by Rs 17 to Rs 3,138 .

Bombay Sugar Merchants Association's spot rates were: S-grade Rs 3,062-3,135 (Rs 3,062-3,135) and M-grade Rs 3,184-3,296 (Rs 3,182-3,301).

Naka delivery rates were: S-grade Rs 3,010-3,050 (Rs 3,010-3,050) and M-grade Rs 3,120-3,180 (Rs 3,120-3,180).