Sugar prices on the Vashi wholesale market ruled steady on Thursday, tracking weak sentiment at the mills level, The futures market was, how ever, bearish.
Sugar prices on domestic futures market declined further by Rs 20 taking a total loss of Rs 65 in the last three days. In the physical market, spot and naka rates ruled unchanged while mill tender rates dropped by Rs 10-20 a quintal on lower demand and weak futures.
A Vashi-based wholesaler said month end will further reduce retailers lifting.
Mills seems to be under pressure to sell the free sale quota before the month-end.
Latest data of Indian Sugar Mills Association (ISMA) said 2012-2013 sugar production till November 15 would be higher by 27 per cent to 9.85 lakh tonnes.
Higher sugar production figures also weighed on the sentiment.
On National Commodities and Derivatives Exchange , December futures were down by Rs 22 to Rs 3,271 (Rs 3,293); January by Rs 20 to Rs 3,294 (Rs 3,314) and February Rs 3,315 (Rs 3,334).
In the Vashi market, arrivals were 66-67 truck loads (each of 100 bags) and local dispatches were about 62-63 truck loads.
On Wednesday evening, 17-18 mills offered tenders and sold about 45,000-47,000 bags (each of 100 kg) to the local traders in the lower range of Rs 3,320-3,380 (Rs 3,330-3,380) for S-grade and Rs 3,370-3,480 (Rs 3,380 - 3,500) for M-grade.
Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,466-3,542 (Rs 3,466-3,542) and M-grade Rs 3,502-3,721 (Rs 3,502-3,721). Naka delivery rates: S-grade Rs 3,410-3,450 (Rs 3,410-3,450) and M-grade Rs 3,450-3,550 (Rs 3,460-3,560).