MUMBAI, JUNE 30:
Spot Sugar prices at Vashi wholesale extended gain by further Rs.30/Rs.40 per quintal on Thursday, taking total rise of Rs.130/Rs.140 in last two days after the announcement of sugar free sale quota for the month of July on Tuesday evening. Traders are of an opinion that announced quota is far lower than expected and has improved the market sentiment positive. In spot prices rose by Rs.30/Rs.40. Naka delivery rates increased by Rs.40/Rs.50 tracking jump of Rs.60/Rs.70 in tender rates as mills held the higher price. Moral was firm said, Vashi market sources.
A spokesman of Bombay Sugar Merchants Association told businessline “With the start of new month tomorrow the retail consumer demand is also expected to rise in the beginning. Fresh buying to fulfill the consumer demand and for inventory building have increased as pipeline is almost empty. Mills are holding the price keeping view of end of the crushing season and coming festival season starts from August. Other main market like Delhi, Karnataka, Gujarat, Utter Pradesh and Rajasthan were showing sharp rise in price. Freight rates were steady at higher level as vehicles are diverted for transportation of exports”.
Sources said, Government has given 15 days extension for June unsold quota of 3 lakh tones and far lower (about 3.90 lakh tones) normal free sale quota of 12.60 lakh tones for July compare to 16.50 lakh tones for June has changed the market move on a positive way / up side. Higher prices at upper mill level will lead spot prices to rise further on support of retail demand. Today being the last day of a June month, there was no selling pressure of mills. Last year for July total 16.65 lakh tones including 14.50 lakh tones normal and 2.15 lakh tones levy sugar quota was given.
In International market sugar prices were 766.70 dollars (previous day 764.80 dollars) for August futures on Wednesday compare to 664 dollar in month beginning. Domestic sugar futures prices also showing firm trend.
On Wednesday 20/22 mills have sold about 70,000 / 75,000 bags (100 kgs each) in the range of Rs.2630 / Rs.2710 (Rs.2610/Rs.2660) for S grade and Rs.2700 / Rs.2800 (Rs.2650/Rs.2750) for M grade. Arrival in the market increased to 58/ 60 truck loads (Each of 100 bags) and local dispatches also higher at 55/56 truck loads.
Bombay Sugar Merchants Association’s rates:
Spot rates: S grade Rs.2741 / Rs.2811 (Rs.2720 / Rs.2762) and M grade Rs.2800 / Rs.2966 (Rs.2776/ Rs.2931).
Naka delivery rates: S grade Rs.2730/ Rs.2760 (Rs.2700 /Rs.2710) and M grade was Rs.2800 / Rs.2900 (Rs.2760 / Rs.2860)
Source: http://www.thehindubusinessline.com/markets/commodities/article2147674.ece
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