Spot market prices of sugar eased further in the major trading centers like Muzaffarnagar and Delhi amidst weak demand coupled with increased supply from mills against poor offtake by stockists and bulk consumers, while prices recovered slightly in Kolkata on slight demand. Declining sugar prices and unviable export coupled with bumper production of 23-24 million tonne with a higher carry over stock of 40 lakh tonnes, is weighing heavily on the finances of the sugar units and even the first advance and subsequent payments to the cane growers are adversely affected, which is likely to affect sugarcane planting and the acreage in turn, during the current year.

Wheat prices were steady to slightly up in domestic markets. At Delhi, Wheat dara for mills increased by Rs.20 between Rs.1060-1065/qtl on steady arrivals around 3,000-4000 bags. Chakki millers were the active buyers. The lower wheat product demand due to higher prices restricted roller flour millers from purchasing wheat in the open market. However, increased fresh arrivals of about 3,500-4,000 bags in Gujarat markets softened sentiments there. Some demand from Chennai and Maharashtra is reported from Gujarat mandis. Harvesting of this year’s crop in most states will begin in March. Government’s decision to release 4 lakh tonnes of wheat under the Open Market Sale Scheme in February and March 2007 is supporting bearish tone.

1017

1002

1032

1006

1010

1022.6

1032

1037

Spot market prices of guar seed and guar gum recovered in majority of markets amidst slight demand from processors and stockists. However, buying from processors and stockists are limited. Processors are procuring seed as per their immediate needs, while stockists are buying limited quantity as they already have ample of stock. Consequently overall arrivals declined and it is reported at 15000-16000 bags a day, which is absorbed in the market. Arrivals stood steady at 1100 bags in Bikaner, increased slightly from 200 to 300 bags in Nokha. Firmness in the futures market, also affected the spot market sentiments.