Mumbai, Oct. 7:

Sugar prices on the Vashi wholesale market ruled steady on Monday as activities were normal.

In the spot market, prices for S-grade declined by Rs 4 a quintal on the lower side, while at the higher level, prices were unchanged.

Naka rates were soft. Mill level rates for S-grade dropped below Rs 2,800 a quintal on the lower side, putting further pressure on producers.

Prices in the futures market ruled steady amidst thin volatility in absence of any positive cue, said sources.

A market observer said that as supply is outstripping demand prices are range-bound. Due to higher production and carryover stocks, producers are selling continuously.

The new crushing season has started and the output is expected to be higher than demand. The Vashi market is carrying over 115-120 truckloads of inventories. Upcountry buying is lacking in Maharashtra, due to disparity.

Arrivals at the Vashi market continued to be 60-62 truckloads (each 100 bags), while local dispatches were 61-62 loads.

On Saturday 11-12 mills sold about 44,000-45,000 bags at Rs 2,780-2,860 (Rs 2,800-Rs 2,860) for S-grade and Rs 2,930-Rs 3,000 (Rs 2,930- 3,000) for M-grade.

The Bombay Sugar Merchants Association's spot rates were (Rs/quintal): S-grade Rs 2,962– Rs 3,105 (Rs 2,966– Rs 3,105) and M-grade Rs 3,102 - 3,272 (Rs 3,102- 3,272).

Naka delivery rates were: S-grade Rs 2,910 -2,950 (Rs 2,910-2,950) and M-grade Rs 3,005 - 3,130 (Rs 3,005 – Rs 3,130).

Uttar Pradesh rates were: Lakhimpur Rs 3,310; Muzzafarnagar Rs 3,240.