Indian sugar mills association

Sugar Hits Low As Selling Pres

Date:	21 Jun 2011

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News ID:	577

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Spot sugar price of “S” grade variety at Vashi terminal market again broke down the level of Rs 2,600 a quintal, lowest level in current crop year on Monday due to increase selling pressure at upper mill and naka level. Market may see further down side move on expectation of desperate selling by mills to complete current months allotted quota before due date – month end, said traders. For June 11 total free sale quota is 16.50 lakh tonnes (lt) less than 17.50 lt for May 11. On Monday, spot prices at Vashi market dropped by Rs 8-10 a quintal in line with decline in Naka - Mill tender rates by Rs 15-20 for S- grade and Rs 10-30 for M-grade. In the absence of local retailers demand, volume also reduced. Demand will be less/subdued till month end and will add more pressure at producing level. Demand for good quality sugar also reduced sharply. Mr. Jagdish Rawal, a wholesaler, said with the clear indication by the government not to allow/increase further sugar export quantity till September 11, sentiment became weak as all were expecting some supports from export front. Mills which were till now, hesitating to sale at lower rates in domestic level, suddenly comes under pressure as they don’t have any choice to reduce stocks except local market. Though mills have sold good amount of sugar in current month, the pressure to fulfill/sell quota of a month is not much big, as seen in last four-five months. Analysts said sugar price also fell due to the emergence of profit-booking by speculators and on prospects of higher production. In the current month, spot sugar prices have declined by Rs 80-90 a quintal in the first fortnight. From January to mid-June sugar prices came down by more than Rs 350-400 due to less than expected demand. In international, sugar price were up to $727.60 per tonnes from $603 last month. On Saturday, 10-12 mills offered tenders and sold 24,000-25,000 bags of sugar lower by Rs 10-15 (100 kg each) at Rs 2,450-2,480 for S-grade and Rs 2,480-2,550 for M-grade. Arrival in the market was 48-50 truck loads (each of 100 bags) and local dispatch was lower at 42-44 truck loads. Bombay Sugar Merchants Association sugar rates: Spot rates: S-grade Rs 2,586 / Rs 2.651 (Rs 2,600-2,651) and M-grade Rs 2,641 / Rs 2,801 (Rs 2,646-2,806). Naka delivery rates: S-grade Rs 2,540- Rs 2,590 (Rs 2,570-2,600) and M-grade was Rs 2,610-Rs 2,700 (Rs 2,620-2,760). Keywords: sugar, commodities market Ads by Google SAP Education @ NIIT Learn SAP from Asia’s No.1 IT Trainer & Boost Your Career Now! NIIT.com/SAP ATCL Grain & Fertilizer White refined sugar icumsa45,White crystal sugar icumsa150 & Raw sugar www.atclgrain.com Brazil Sugar, Rice, Dairy Traditional Exporter from Brazil Sugar, Rice, Dairy, Corn, Beans www.energy.com.br Related TOPICS agriculture sugar (commodity) economy, business and finance commodities market Email the Editor Silver Rates Silver Rates Gold Rates Gold Rates Ads by Google Ads by Google Free Mcx Tips on SMS With Your Unicon Commodity Trading Account. Sign Up Today! UniconDirect.com/Free_Mcx_Tips Best Free Stock Charts Realtime, 68 indicators, trendline alerts, drawing tools, scans, Free! www.FreeStockCharts.com All-New Ford Fiesta Sedan Advanced Blue-tooth voice control Voice controlled Auto AC India.Ford.com/All-NewFiesta Ads by Google

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