Cautious and slightly weak sentiment continued in sugar market on Monday, tracking higher selling. In the Vashi wholesale market, spot prices declined by Rs 10-20 a quintal.
Naka rates were marginally down, while mill tender rates remained almost unchanged.
The beginning of new crushing season weighed on sentiment though traders were positive about the higher demand during Dasara festival from next week.
Freight rates from Kolhapur – Karad line increased by Rs 5-10 a bag on increased fuel cost.
Sources said that increased resale selling pressure for contracts having nearby due dates for lifting pulled down spot and naka rates, while mills tender rates ruled steady on stockists’ buying.
New buying interest from Eastern States may continue in the coming days.
Arrivals in Vashi continued to rule higher while improved local demand kept market sentiment positive.
Sources said that last week Maharashtra’s mills sold about four – five rail rakes (each of 27,000 bags) to Eastern side buyers.
During Navaratri - Dasara and Diwali sugar consumption usually rises.
Market may witness tight supply for quality sugar as mills producing fine variety M-grade are not very keen to sell at lower rates, said sources. In Vashi market, arrivals were about 66-67 truckloads (each of 100 bags of quintal each) and local dispatches were about 64-65 loads.
On Saturday evening, about 17-18 mills offered tenders and sold 84,000-85,000 bags (each of 100 kg) to the local traders in the range of Rs 3,380-3,440 (Rs 3,380-3,440) for S-grade and Rs 3,460-3,540 (Rs 3,480-3,550) M-grade.
The Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,522 – Rs 3,575 (Rs 3,522 – Rs 3,622) and M-grade Rs 3,592- 3,701 (Rs 3,610- 3,701).
Nakadelivery rates: S-grade Rs 3,450 -3,500 (Rs 3,460 -3,480) and M-grade Rs 3,530-3,620 (Rs 3,550-3,650).