March '08, dream month for Miller, traders and speculators...
Sugar has been trading firm on the back of brisk domestic buying ahead of the festival season coupled with speculative buying in futures. Traders said higher demand at the beginning of the month coupled with high global prices was offsetting the impact of a higher domestic sale quota for March at 1.6 million tonnes. This year (Oct-Sept) sugar production is likely to total 25.4 million, down from 28 million tonnes the previous year due to delays in crushing operations. Sugar also received a boost from increased demand from soft drinks and ice-cream manufacturers. Many millers are also holding back stocks in expectation of further rise in prices. So far, contracts have been signed for exporting around 3 million tonnes of sugar, with around 1.4 million tonnes already shipped. In Delhi, sugar ready M grade prices increased to Rs 1650-1,690/quintal. Similarly, mill delivery M and S grade prices also quoted higher at Rs 1,430-1,520/ quintal and Rs 1,410-1,500/ quintal, respectively. NCDEX contracts also followed same trend during week but lost out later. Maharashtra, largest producer has moved up most sharply banking on fresh domestic demand and demand from exporters. However its likely that after NCDEX March expiry and so called demand of Holi is over, market may see a sharp correction, primarily in secondary market, where traders and agents have choked up to their head. Overall market may have some more heat left in it but is likely to turn to red in next half of the month.
1 comment:
Good for people to know.
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