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Sugar turns sour on lukewarm response from stockis |
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Date |
27-Jul-2010 |
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Source |
THE HINDU. BUSINESS LINE |
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Reporter |
Our Correspondent |
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News Id |
239 |
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Sugar market witnessed a correction of Rs 10-30 in spot and naka delivery rates on Monday, after rising over Rs 150 on Friday and Saturday.
At higher levels, profit-booking by stockists weighed on the market, whereas mills were quoting their sale prices. But due to lack of parity at higher levels, the response from stockists was poor.
Stockists turned to resale, which took place at prices below Rs 2,700 a quintal.
On the decision by sugar mills to not sell below Rs 2,700 a quintal, the Bombay Sugar Merchants Association held a meeting on Friday to protest the move and appealed to the Centre to stop such unfair practices.
On Monday, stockists offloaded some inventories. Half of the volume was resale. There were heavy arrivals of two days but no pressure was seen on the market, said Mr Tokershibhai, a leading trader.
On the Vashi wholesale market, arrivals were 45-50 truckloads of 10 tonnes each and lifting was 50-55 truckloads.
Upcountry and local retail demand are lukewarm up due to rains. Once the rains stop, heavy buying for festive season is expected to start in a big way and prices may firm up, he said.
The Sugar Merchants Association said the spot market rate for S-grade was Rs 2,790-2,850 a quintal against Rs 2,810-2,870 on Saturday. M-grade was quoted at Rs 2,820-2,950 against Rs 2,850-2,960. Naka delivery rate for S-grade was Rs 2,770-2,800 against Rs 2,800-2,830 on Saturday. M-grade Naka delivery eased to Rs 2,820-2,900 from Saturday’s Rs 2,830-2,900.
Mills quoted Rs 2,799 for S-grade and Rs 2,848 for M-grade. In the resale, S-grade was quoted at Rs 2,700-2,730 and M-grade at Rs 2,750-2,820 |
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