Retail buying helps sugar gain

Date 23-Jul-2010        Source THE HINDU.BUSINESS LINE        Reporter Our Correspondent        News Id 234

Sugar prices rose by Rs 5-10 a quintal on Thursday on the Vashi wholesale market following increased retail buying. Arrivals were limited. Mills did not quote any offer in view of a meeting between them. They closed their offering at previously decided base rates with very thin volumes on Wednesday. The naka and tender delivery rates were steady with normal volume. Sentiment showed a firmness in price, traders said. The upcountry markets witnessed a firm trend. In Uttar Pradesh, Bengal, Rajasthan and Gujarat, sugar prices went up by Rs 20 to Rs 30 for 100 kg bag. All the concerned players eyed the millers’ meeting, Mr Hirenbhai of Surya traders said. Arrivals in the Vashi market were about 20-22 truckloads (10 tonnes each) and delivery lifting at 18-20 truckloads was less because of the rain. According to the Sugar Merchants’ Association, the spot rate was Rs 2,680-2,715 a quintal for the S-grade and Rs 2,700-2,770 for M-grade. The naka delivery rate for S-grade was Rs 2,650-2,670 and for M- grade Rs 2,700-2,720. The mill delivery tender (including excise) was quoted at Rs 2,585-2,600 (S-grade) and Rs 2,610-2,650 (M-grade). Ex-mill prices were not quoted due to a meeting in the morning session. On Wednesday, it was Rs 2,500-2,525 for the S-grade and Rs 2,530-2,570 for M-grade. Reuters reports: October raw sugar on ICE broke above a double top at 17.70 cents/lb set earlier this week and rose as high as 17.80 cents before falling back slightly to 17.76 cents by 1309 GMT, up 1.7 per cent. October whites on Liffe rose 2.3 per cent to $554.80 a tonne