Spot prices of sugar continue to decline in the majority of markets like Muzaffarnagar, Delhi and Kolkata amidst weak demand and improved supply from mills. Internationally, white sugar prices have recovered up to $341 a tonne, after dipping to $320 a tonne. The recovery was due to decline in sugar supply from the European Union. Increasing global prices have brightened domestic sugar industry hopes for export. The government has already cleared export release orders of 2.15 lakh tonnes, of which 1.65 lakh tonne is under ALS and 50,000 tonnes under open general license. Applications of about 30,000-40,000 tonnes of sugar export are yet to be cleared. However, the global prices of sugar are expected to remain between $320-340/ tonne and would not rise further, as the supplies from Brazil would hit global markets in March.

Wheat prices traded mixed in domestic markets. However, poor demand amidst steady arrivals is mainly underpinning majority of spot markets sentiments. Increased fresh arrivals in Gujarat markets led to decline in prices. Government’s decision to release up to 4 lakh tonnes of wheat under the Open Market Sale Scheme in February and March, 2007 is supporting bearish tone. At Delhi, Wheat dara for mills quoted slightly firm at Rs.1040-1045/qtl on steady arrivals around 3,000-4000 bags. The lower wheat product demand due to higher prices restricted roller flour millers from purchasing wheat from open market.

The guar spot markets witnessed steady sentiment during Monday's trade, when the spot prices of guar seed and guar gum stayed unchanged in majority of markets on subdued demand, while eased slightly in Nokha on weak demand. Diversion of overseas demand to Pakistan has also affected the spot market sentiment, as the Pakistan is quoting at Rs. 4200 per qtl, lower by Rs. 600 against the Indian prices for Guar gum. The arrivals at the major physical markets are reported to be steady at around 15-16,000 bags. Arrivals increased from 800 to 1100 bags in Bikaner, while it declined from 400 to 200 bags in Nokha. Moreover, the weakness in the futures market, also affected the spot market sentiments..

NCDEX-Guar Seed-Mar.

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NCDEX-Guar Gum-Mar.

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