Selling pressure weighs on sugar

Continuous selling pressure from producers kept the sugar market weak on Wednesday supported by slack physical demand at distribution markets. At the Vashi wholesale market, prices went down further by ₹15-40 a quintal narrowing the gap between mills parity for traders and market rates. Arrivals were at 58-60 truck loads and local dispatches were at 55-56 loads. Freight rates were steady. Inventory at Vashi were about 108-110 truck loads. On Tuesday evening, 16-18 mills offered tenders and sold about 34,000-35,000 bags at ₹2,790-2,860 for S-grade and ₹2,860-3,000 for M-grade. The Bombay Sugar Merchants Association’s spot rates: S-grade ₹2,995-3,126 and M-grade ₹3,075-3,302. Nakadelivery rates: S-grade ₹2,940-3,040 and M-grade ₹3,000-3,150.