After witnessing a sharp correction of Rs 50-70 a quintal from its highs in the last two days, sugar prices on the Vashi wholesale market ruled steady on Tuesday.
Mills are holding the price on expectation of a positive announcement by the Government regarding exports this week; this is expected to keep volumes comparatively at a low level. Local demand has also eased due to the middle month period. Sentiment was cautious as traders expect additional sugar exports to support bullish sentiment later on.
Sources said that at the Vashi physical market , limited demand kept volumes as usual. Absence of demand from neighbouring States, despite prices in Maharashtra being Rs 150-200 lower than northern States, made producers offload sugar in the local markets.
But, likely permission to export more has made them unwilling to sell at lower ratesTraders are now refraining from bulk buying or betting on fine quality sugar due to the high rates.
Sugar prices in the Mumbai spot market rose by Rs 170 – 175, tracking the sharp rise of Rs 175 – 200 in mill tender rates in the first 12 days of the month. Over the last two days, the market witnessed sharp correction on less than expected hike in cane prices.
On Monday, more mills came forward with tender offers. About 14 –15 mills offered tenders and sold about 30,000-35,000 bags of sugar in the range of Rs 2,770 – 2,850 (2,790 – 2,860) for S-grade and Rs 2,920 – 3,000 (2,900 – 3,010) for M-grade.
Arrivals at the Vashi market were at routine level, of about 46-48 truckloads and local dispatches were nearly 44 – 45 truck loads. Bombay Sugar Merchants Association sugar rates (Rs/quintal): Spot rates: S-grade Rs 2,931- 3,001 (2,931 –3,001) and M-grade Rs 2,996- 3,131 (2,991- 3,132).
Nakadelivery : S-grade Rs 2,900- 2,970 (2,900 –2,950) and M grade Rs 2,970- 3,100 (2,970 – 3,050).