Indian sugar mills association

Diwali over, demand for sugar

Date:	01 Nov 2011

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News ID:	633

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Mumbai, Oct. 31: Sugar prices declined by Rs 10-15 a quintal in the physical market on Monday, due to month-end lifting pressure at upper level and eased local demand.

Stockists kept away from fresh buying and preferred to take deliveries of old contracts. Speculators were in reselling mood, kept overall sentiment weak. Naka rates dropped by Rs 20-30. Arrivals at the Vashi wholesale market were higher than local despatches, said sources.

A wholesaler said lifting pressure on stockists before due date kept sentiment weak. After Diwali, first fortnight generally market witnessed weak demand situation and bearish mood.

Hence, there is a chance of further decline in prices. Demand for sugar is nil as Diwali is over. Pressure on traders for lifting October`s purchases kept them away from fresh buying.

Arrivals

Arrivals in the Vashi market were at 54-55 truckloads while local dispatches were at 48-50 truckloads. On Saturday, hardly one – two mills offered tenders due to holiday mood. On Monday evening, mills tenders were expected at Rs 2,720-2,790 (Rs 2,730-2,810) for S-grade and at Rs 2,820-2,930 (Rs 2,840 -2,960) for M-grade.

Bombay Sugar Merchants` Association`s spot rates: S-grade — Rs 2,821-2,911 (Rs 2,831-2,911) and M-grade — Rs 2,911- 3,062 (Rs 2,926-3,076).

Naka delivery rates: S-grade — Rs 2,780-2,850 (Rs 2,800 -2,870) and M grade Rs 2,880-3,000 (Rs 2,890-3,030).

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