Sugar may gain on delay in cane crushing

Sugar prices on the Vashi market showed a mixed trend on Wednesday. Prices in spot ruled steady on routine demand – supply while at naka level it improved by Rs 5 for M grade and declined by Rs 10-15 for S grade.

Mill tender rates rose by Rs 10-15 on higher festival demand and firm futures markets. The sentiment remained steady in spot and firm at upper level, said traders.

Jagdish Rawal of B.Bhogilal and co, told

Business Line “Sentiment was steady in physical market due to month-end eased demand but undertone of the market was firm as retail and bulk demand for sugar could be higher next few days ahead of Diwali festival. Market is already witnessing fresh demand from sweet makers. ” But delay in new crushing season in the State and expected lower production in 2012-13 will support the price. In Vashi spot market, arrivals continued at 70-72 truck loads (each of 100 bags) and local dispatches were about 68-70 truck loads.

On Tuesday evening, 20-22 mills offered tenders and sold 68,000-70,000 bags (each of 100 kgs) to the local traders in the range of Rs 3,370-3,420 (Rs 3,350-3,410) for S-grade and Rs 3,450 - 3,540 (Rs 3,430-3,520) for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,492-3,561 (Rs 3,492-3,561) and M-grade Rs 3,552-3,701 (Rs 3,550- 3,701). Nakadelivery rates: S-grade Rs 3,440-3,480 (Rs 3,450-3,500) and M-grade Rs 3,500-3,650 (Rs 3,500-3,650).