Spot market prices of sugar declined in the majority of markets like Delhi, Muzaffarnagar and Kolkata on continued sluggish demand and no one is keen to stocking due to expectations of higher production this season. Further, sweet tidings for sugar factories in Karnataka, as the centre has permitted the state to produce 3.3 crore liters of ethanol to supply it to oil companies. The govt. permitted 5% ethanol blending in India, which may create a demand for 550 million liters for the current year and the centre is planning to blend 10% ethanol in phase –2 which will generate a demand of 1200 million liters. Sugar prices in the country are likely to dip with a projected production of 23-24 million tonne and with a carryover stock of 4 million tonne. Despite good sugar output, the diversion of cane to ethanol production in India and similarly with export demand for sugar reviving, support to prices is expected in the longer term.

Wheat prices declined sharply in majority of domestic markets on higher arrivals amidst poor demand at higher price levels. The lower wheat products demand due to higher prices restricted roller flour millers demand from open market. At Delhi, Wheat dara for mills decreased sharply by Rs.40-50 at Rs.1020-1030/qtl. Arrivals remained steady at higher levels at 10,000-12,000 bags from 4000-5000 bags during Thursday. The arrivals are reported from Punjab, Haryana and U.P. as stockists are interested in liquidating their stocks on easy outlook and likely early arrivals of wheat in spot markets. Fresh arrivals of wheat are reported from Gujarat mandis. In Rajkot, the fresh arrivals reported at 2,500-3,000 bags per day and price declined by Rs.40-45 further to Rs.1050-1060. As wheat prices in Gujarat ease, demand from Maharashtra for Gujarat wheat is expected. Futures market followed spot sentiments.

Guar spot market reflected firm sentiments during Monday’s trade when spot prices of guar seed and guar gum remained higher in the majority of markets on slight demand amidst steady arrivals. Arrivals stood at 1100 bags in Bikaner, while declined slightly to 100 from 300 bags in Nokha. Overall arrivals remain steady at 15000-16000 bags a day in all over India. As per market sources some buying activity from Stockists as well as exporters were active during the day’s trade. Moreover, firmness in guar futures market supported trading activities in the spot markets.

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1980

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4965

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