Sugar prices continued to rally on expectation of tight supply scenario during coming festival period. Prices shot up by Rs 50-60 a quintal on the Vashi wholesale market on Friday, taking the total rise to pver Rs 650-700 in the last one month. Analysts said despite Forward Markets Commission watching closely, sugar futures hit a new high on strong buying support. Sugarcane output this year is expected to be lower due to scanty rain. Sources said that bullish futures market is pushing prices higher in physical market despite routine demand. Naka rates improved further by Rs 40-60 while mill tender rates edged up by more than Rs 100 on second consecutive day. Traders were demanding immediate release of additional free sale quota. Sugar futures were up by more than Rs 50 till noon. Producers were not very keen to sell at lower price as they continued to get good buying support.
Arrivals and local dispatches were routine but demand is expected to rise further during the month. M-grade price scaled a high of Rs 3,811 in physical markets. In Vashi market, arrivals were 55-56 truckloads and local dispatches were at 52-54 loads. On Thursday evening, only 15-16 mills offered tenders and sold about 52,000-55,000 bags (of 100 kgs each) to the local stockiest in new higher range of Rs 3,570-3,620 (Rs 3,450-3,520) for S-grade and Rs 3,620-3,720 (Rs 3,540-3,600) for M-grade.
Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,611-3,691 (Rs 3,600-3,650) and M-grade Rs 3,692- 3,811 (Rs 3,690- 3,740).
Nakadelivery rates: S-grade Rs 3,620 -3,660 (Rs 3,560 -3,625) and M-grade Rs 3,700-3,760 (Rs 3,660-3,720).