Web Sify
Follow us on
Mail
Print

Indian sugar up on value buying; fundamentals weak, traders say

Source : REUTERS
Last Updated: Fri, Sep 13, 2013 11:10 hrs

NEW DELHI, Sept 13 (Reuters) - Indian sugar futures rose on Friday, extending gains for the second consecutive day, as a week-long spell of falling prices gave traders an opportunity to buy at lower rates, but market participants said fundamentals remained weak.

* Sugar had settled higher on Thursday, snapping a seven-day falling streak on value buying after a recent drop in prices, though prospects of higher output for the fourth straight year capped the gains.

* The key October contract settled at 2,988 rupees ($46.62) per 100 kg at 1016 GMT, up 10 rupees on the National Commodity and Derivatives Exchange.

* Oversupply and the prospects of higher output in the next season beginning October will ensure that sugar starts falling again, said Mukesh Kuvadia, secretary general of the Bombay Sugar Merchants Association.

* "The rise is just a blip," Kuvadia said, adding that lack of export opportunities due to lower international prices have led to huge stocks with mills.

* Sugar output in India, the world's biggest consumer, is expected to exceed the current year's 25 million tonnes in the marketing year beginning October, higher than the local demand of around 23 million tonnes.

* Maharashtra and Uttar Pradesh, the top two sugar producing states in India, have received more rainfall than normal since the start of the monsoon in June, data from the weather department showed, boosting prospects of higher production.

* Spot sugar was at 3,351 rupees per 100 kg at the Kolhapur market in Maharashtra state, up from 3,346 rupees per 100 kg the previous day. ($1 = 63.67 rupees) (Reporting by Mayank Bhardwaj; Editing by Jijo Jacob)




More from Sify:
blog comments powered by Disqus
most popular on facebook
talking point on sify finance