Sugar was mixed on Thursday with futures declining and spot ruling steady.

In the futures market, August contracts touched their lowest level since first week of May extending bearish trend for fourth consecutive day.

In Vashi spot market sentiment remained steady on routine activities.

Naka and mill tender rates were unchanged.

Retail offtake improved due to Ramzan but sufficient supply from mills weighed on price.

Jagdish Rawal of B. Bhogilal & Co said: “Sugar prices across the country are ruling at lower level considering higher cost of production due to rise in cane price by State Governments and hence, millers are not very keen to sell. On the other side, less than expected demand forced them to offload commodity to keep financial liquidity. As sugar output this year is higher than domestic consumption, the supply is ample. In the coming year also, output is expected to be higher than demand. So the market will continue to see range bound volatility.”

Arrivals at Vashi market were 62-63 truckloads (of 100 bags each) and local dispatches were about 61-62 loads.

On Wednesday, about 15-16 mills offered tenders and sold about 43,000-45,000 bags to the local traders at Rs 2,935-3,000 (Rs 2,935-3,000) for S-grade and Rs 3,030-3,110 (Rs 3,030-3,110) for M-grade.

Demand from upcountry buyers was lacking.

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 3,066-3,145 (Rs 3,066-3,145) and M-grade Rs 3,192-3,311 (Rs 3,182-3,311).

Naka delivery rates were: S-grade Rs 3,010-3,080 (Rs 3,010-3,080) and M-grade Rs 3,120-3,230 (Rs 3,120-3,230).