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
* 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
($1 = 63.67 rupees)
(Reporting by Mayank Bhardwaj; Editing by Jijo Jacob)