Sugar prices ruled unchanged at all levels (from the producing centres to the retail market) on Friday after rising over the last two days, supported by improved local demand at the beginning of the month and considering the lower free-sale quota for the month. The price at the Vashi wholesale market, naka and mill levels ruled unchanged on routine demand, while the futures market showed range-bound thin volatility. Morale in the market was steady.
According to a wholesaler, with higher production and ample stocks available with them, millers continued to sell at the current rates to avoid a build-up of inventory. An improvement in routine retail demand at the beginning of the month has lead to a steady rise in volumes at the upper and market level. But despite the firm sentiment, regular supply arrested a price rise. Sugar prices in Maharashtra have increased by Rs 30-Rs 40 in the last two days, after the announcement of the quota for February. Morale in the market was firm at the upper level, he said.
A trader further said local demand has picked up at the beginning of the new month, but would soon ease. Buying by the neighbouring States was absent in Maharashtra. Higher production in Karnataka was sufficient to meet the need of the southern and eastern States, forcing Maharashtra's mills to sell in the local market.
In the world market too, futures prices were steady. The March-12 future closed at $629.80 ($629.70) and the May-12 future closed at $612.30 ($611.20) on Thursday.
Arrivals in the Vashi market was at 55-56 truckloads and local dispatches were around 52-53 truckloads. On Thursday, 17-18 mills offered tenders and sold 90,000–95,000 bags in the steady range of Rs 2,770-2,830 (Rs 2,770-2,830) for the S-grade and Rs 2,860-2,950 (Rs 2,860-2,950) for the M-grade.
The Bombay Sugar Merchants' Association's spot rates: S-grade Rs 2,911-2,962 (Rs 2,911-2,962) and M-grade Rs 2,986-3,092 (Rs 2,986-3,092). The naka delivery rates were: S-grade Rs 2,850-2,920 (Rs 2,850-2,920) and M-grade Rs 2,940-3,050 (Rs 2,940-3,050).