Sugar rises on higher retail purchase

Date 11-Jul-2010        Source THE HINDU.BUSINESS LINE        Reporter Our Correspondent        News Id 217

The sugar market improved on Friday. At Vashi, the spot price ruled steady but Naka and Tender delivery price rose by Rs 5-10. The pressure on mills to exhaust their sugar sale quota by Saturday has eased sharply. Only 10,000-12,000 bags (of 100 kg each) have to be lifted. In the past week, the pressure to sell nearly 40,000-50,000 bags kept the prices on leash. The prices stablised as retail buying increased and mills were not willing to sell below Rs 2,598 a quintal. If the buying by the stockists increases, the market could see further upside, said Mr Tokershibhai, a wholesaler at the Vashi market. Total arrivals on Friday at the market was about 25–30 truckloads (10 tonnes each), and 30–35 truckloads were lifted. There was a small reduction in the market’s inventory stocks. Friday’s spot rate was Rs 2,660-2,720 a quintal for S-grade and Rs 2,710-2,790 for M-grade. Naka delivery rate for S-grade was Rs 2,630-2,660 and for M-grade Rs 2,675-2,720, according to the Bombay Sugar Merchants Association. The mill delivery tender (including excise) was quoted at Rs 2,550-2,580 for S-grade, and Rs 2,600-2,640 for M-grade. Maharashtra ex-mill prices were quoted at Rs 2,490-2,500 for S-grade, and Rs 2,520-2,570 for M-grade. Bloomberg reports: Sugar futures rose on Friday with Liffe whites hitting a four–month peak boosted by the temporary shutdown of Brazil’s No. 2 port Paranagua and a Thai tender to buy 100,000 tonnes. Liffe August white sugar touched $623.50 a tonne at 1230 GMT, up $17.70 or 2.9 per cent. ICE October raw sugar futures were up 0.27 cent at 17.36 cents a lb.