Sugar prices on the Vashi wholesale market ruled steady on Wednesday but the undertone was weak due to continuous supply from mills.
Naka prices were unchanged, while mill tender rates dropped by Rs 10 a quintal on higher selling.
Arrivals and local dispatches improved ahead of Diwali. Domestic sugar futures were weak, tracking bearish trend in physical markets, said an observer.
A spokesman of the Bombay Sugar Merchant Association said: “Ample supply from mills continued in local market as demand from neighbouring States is missing in Maharashtra since long time due to prices in other producing States ruled at par with Maharashtra. In Mumbai, local demand is less than expected despite Diwali festival”.
He said as stockists have covered sufficient stocks during Dasara, they are keeping away from fresh inventory buying. The Vashi market is currently carrying more than 110 truckloads of stocks. Sources said that sugar prices are expected to decline after Diwali due to higher open sale quota. Before the month end, producers have to complete 40 lakh tonnes of open sale sugar allotted for October and November.
On the National Commodities and Derivatives Exchange, Dec futures were up by Rs 2 to Rs 3,321 (Rs 3,319), January contracts Rs 3,335 (Rs 3,336) and February down by Rs 11 to Rs 3,358 (Rs 3,369).
In the Vashi spot market, arrivals continued at 69-70 truck loads (each of 100 bags) and local dispatches were about 67-68 truck loads.
On Tuesday evening 17-18 mills offered tenders and sold about 68,000-70,000 bags (each of 100 kg) to the local traders at Rs 3,340-3,390 (Rs 3,350-3,400) for S-grade and Rs 3,425-3,490 (Rs 3,430-3,500) for M-grade.
The Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,472-3,551 (Rs 3,472-3,552) and M-grade Rs 3,551-3,701 (Rs 3,542-3,701).
Naka delivery rates: S-grade Rs 3,420-3,450 (Rs 3,420-3,450) and M-grade Rs 3,500-3,625 (Rs 3,500-3,625).