NEW DELHI – Prices of medium-grade sugar in north India fell today as demand was hit after prices rose in the last two days, traders said.
Today, sugar prices were down 10 rupees per kg in Delhi and by 20 rupees per kg in Muzaffarnagar, Uttar Pradesh.
Prices had risen earlier because of a pick-up in summer demand and as most mills have completed their sales quota for April.
"If the government lowers the monthly sale quota for May then prices may rise next month," Delhi-based trader Naresh Gupta said.
Meanwhile, sugar prices in Mumbai were steady because of demand-supply parity.
Prices, however, were unavailable in Kolhapur, Maharashtra, as markets were shut on account of polling for General Elections.
On ICE Futures US, the most active July contract of raw sugar was at 12.94 cents per pound, down 0.3% from the previous close. The fall in prices could be attributed to profit booking by investors, after contracts hit a two-month high of 13.05 cents per pound on Monday.
"Selling pressure exerted by Thailand producers continues to be present. We, therefore, do not anticipate much of a move away from the current range in the short term unless a macro or weather event creates an unforeseen catalyst," Sucden Financial said in a report.
Centre-South Brazil has been receiving higher-than-average rainfall in the second week of the new season, Sucden Financial said.
Following are today's prices for medium-grade sugar, in rupees per 100 kg, in key wholesale markets, and the change from the previous close:
MARKET
PRICE
CHANGE
Delhi
3,295
(-)10
Mumbai
3,332
0