Sugar futures fell to a contract low in early trading on Wednesday but later recovered on reports that Brazil’s sugarcane production will be lower than expected this month.

Spot prices across the country ruled flat.

The Vashi wholesale market was closed on occasion of Anna Saheb Patil’s 80th Birth Anniversary.

A spokesman of the Bombay Sugar Merchants Association said that wholesale traders kept off from the market as there was no movement in prices.

On the National Commodity and Derivatives Exchange, November contracts dropped to a contract low of Rs 2,920 before ending higher at Rs 2,942 a quintal.

December contracts closed at Rs 2,949. An observer said that the current season year ending this month will close with surplus stocks of around 90-95 lakh tonnes.

Analysts said that Thailand and India could compete in the Asian market for share in the raw sugar market.

India usually sells white sugar, but next season, it is expected to export raw sugar too.

On Tuesday evening, 16-17 mills offered tenders and sold 38,000 – 40,000 bags at Rs 2,840-2,930 (Rs 2,840-Rs 2,930) for S-grade and Rs 2,950-Rs 3,020 (Rs 2,950- 3,020) for M-grade.

Nominal sugar prices in Mumbai were (Rs/quintal(: S-grade Rs 3,000– Rs 3,125 (Rs 3,002– Rs 3,125) and M-grade Rs 3,140 - 3,280 (Rs 3,141- 3,282).

Naka delivery rates were: S-grade Rs 2,930 -3,000 (Rs 2,930-3,000) and M-grade Rs 3,040 - 3,170 (Rs 3,040 -3,170).

Prices in Uttar Pradesh were: Lakhimpur Rs 3,400; Muzzafarnagar Rs 3,260.