Indian sugar mills association

Sugar prices dip on selling pressure

Date:	16 Feb 2012

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	921

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Mumbai, Feb. 15: Spot sugar price ruled weak on increased selling pressure at naka level on Wednesday.

In physical markets, spot prices declined by Rs 5-10 a quintal. Naka rates eased by Rs 10-20 as stockists were under lifting pressure for their old commitment for which due date was February 15. Mill tender prices were almost unchanged on regular demand. Middle month routine retail demand keeps sentiment steady, said market sources.

Wholesaler said traders were under pressure to fulfil the old commitments due on February 15 lead to bearish trend at naka level on need-based and limited local demand. Local retail demand eased in middle month period. Stockists were avoiding big inventory buying as they hold ample stocks.

A leading broker said that upcountry market rule par with Maharashtra keep fresh buying of neighbouring States at bay. Rail rake volume is lacking since last one month. There is no positive indication from export front also.

In world market, sugar futures price fell by $15-16.50 on Tuesday. March-12 futures closed lower at $640.40 ($656.90) and May-12 futures closed at $622.80 ($637.80). Arrivals in Vashi market were 52-53 truckloads and local dispatches were around 49-50 truckloads.

About 21-22 mills offered tenders on Tuesday and sold about 70,000–75,000 bags in the range of Rs 2,760-2,830 (Rs 2,760-2830) for S-grade and Rs 2,860-2,930 (Rs 2,860-2,940) for M-grade.

Bombay Sugar Merchants Association`s spot rates:S-grade Rs 2,900-2,962 (Rs 2,902-2,962) and M-grade Rs 3,002- 3,082 (Rs 3,016- 3,092). Naka delivery rates: S-grade Rs 2,870 - 2,900 (Rs 2,860 - 2,920) and M - grade Rs 2,960-3,020 (Rs 2,970-3,050).

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