Spot market prices of sugar continue to decline in the majority of markets like Delhi, Muzaffarnagar and Kolkata on weak physical demand and no one is keen to stock. In Maharashtra, despite lower recovery levels, caused due to unfavorable climatic condition, mills are likely to end up producing over 70 lakh tonnes of sugar during the current 2006-07 season. Further, the European Commission proposed to cut the sugar production quotas for the MY2007-08 by 12 percent to prevent a significant surplus in the European Union (EU).

Wheat prices continue to fall on stockist selling due to increased arrivals in producing belts. Lower wheat products demand due to higher prices kept roller flour millers away as buyers. Atta prices also declined by Rs.15 per qtl on lower demand. At Delhi, Wheat dara for mills decreased to Rs.1020/qtl on selling pressure from stockists following increased supplies. Arrivals remained steady at higher levels at 10,000-12,000 bags. Reduced offtake from roller flourmills also had its effect on the trading sentiments. Significant volume of wheat has started arriving in market yards of Gujarat. In Rajkot, the fresh arrivals reported at 2,500-3,000 bags per day and price declined to Rs.1040-1050. Higher day temperatures are adding to concern among experts on wheat yields. During the heading and flowering stages, excessively high or low temperatures and drought are harmful to wheat.

As per market sources, major global importers are diverting their demand to Pakistan as the guar gum is offered at lower prices at around Rs. 4500 per qtl by them, as against India’s Rs. 4950 per qtl. However, in view of depleting stock of guar gum in Pakistan, India is likely to witness export demand in the near future. Arrivals increased slightly from 1100 to 1200 bags in Bikaner and 100 to 200 bags in Nokha. Overall arrivals remain steady at about 15000-16000 bags all over India. Slight demand from millers observed during day’s trade, while Stockists activity remained silent in the market.