Sugar prices rule slightly weak initially due to selling pressure but later on improved on increased retail demand on Friday.
In the Vashi wholesale spot market, S–grade declined by Rs 13 a quintal while M–grade ruled steady. Naka level resellers selling pulled down prices by Rs 10-20. Mill tender rates were almost unchanged except premium quality that sold slightly for higher rates. Retailers and semi wholesalers came forward with fresh orders. Sentiment was positive, said sources.
A Vashi-based wholesaler said high volatility in domestic futures markets and improved lifting kept overall sentiment steady in physical market but host of festivals in next two months and concern over decline in sugar output next season have been supporting factors for the markets.
Producers sold higher quantity of sugar with good quality fetching Rs 10 higher. All are now waiting for the announcement of new quota for October to December, he said. On the National Commodities and Derivatives Exchange, sugar futures were down by Rs 15-20/quintal. October futures dropped to Rs 3,570 (Rs 3,585); November contracts were Rs 3,566 (Rs 3,585) and December was Rs 3,448 (Rs 3,462) till noon.
In Vashi wholesale market, arrivals and local dispatches were higher at 68-70 truck loads (each of 100 bags of quintal each) while local dispatches were about 65–66 truck loads.
On Thursday evening about 16-17 mills sold about 73,000-75,000 bags (each of 100 kg) in the range of Rs 3,540-3,580 (Rs 3,540-3,570) for S-grade and Rs 3,630-3,700 (Rs 3,630-3,690) for M-grade.
The Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,612- 3,692 (Rs 3,625-3,692) and M-grade Rs 3,692-3,811 (Rs 3,691-3,811).
Naka delivery rates: S-grade Rs 3,580-3,610 (Rs 3,590-3,640) and M-grade Rs 3,650-3,725 (Rs 3,660-3,740).