Sugar prices are likely to rule flat amidst thin sideways movement of Rs 20-25 a quintal in the near future. Spot market prices on the Vashi wholesale market dropped for the S-grade by Rs 10-30, while they were unchanged for M-grade. Naka and mill tender rates were steady on routine demand.
“There is nothing positive to look forward to in the near future for the sugar market. Mills are carrying surplus inventory and selling regularly as the production season is on. Upcountry and export demand has been lacking for long. World sugar prices are also bearish. So continuous supply and ample stocks will put pressure on domestic markets,” said an observer.
Data from Thailand show that millers there have no choice but produce more raws because of a record crop despite weak global prices. By January 8, about 2.07 million tonnes of raw sugar were produced, up from 1.73 million in the same period a year ago.
Arrivals at the Vashi market were 58-60 truckloads (each 100 bags), while local dispatches were 58-60 truckloads. On Saturday, 17-18 mills offered tenders and sold 40,000-42,000 bags at Rs 2,620-2,700 (Rs 2,620-2,700) for S-grade and Rs 2,720-2,880 (Rs 2,720-2,880) for M-grade.
The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 2,772-2,920 (Rs 2,782-2,951); M-grade Rs 2,931-3,062 (Rs 2,931-3,062).
Naka delivery rates were: S-grade Rs 2,700-2,810 (Rs 2,700-2,810); and M-grade Rs 2,820-3,000 (Rs 2,820-3,000).
Agencies report: Spot sugar was down Rs 12 at Rs 2,803 at the Kolhapur market in Maharashtra.
Prices in most wholesale markets in North India rose due to start of festival and wedding season, dealers said.
Sugar price in Delhi and Muzaffarnagar was up Rs 25 and Rs 7 rupees, respectively.
Dow Jones adds: Raw sugar futures resumed their slide on Monday morning, slipping below 15.50 cents a pound for a third time in as many sessions.
“Strong Thai production, solid Indian exports and huge Brazilian supplies should keep any upside contained,” said Sterling Smith, a futures specialist at Citigroup in Chicago. Raw sugar for March delivery on the ICE Futures US exchange was recently 0.7 per cent lower at 15.46 cents a pound.