Indian gold futures slip

Indian sugar futures rose on Monday to align with the physical market, while wheat slipped despite concerns about lower domestic output, brokers said. Gold prices fell in line with world markets, but soyaoil firmed on low bean arrivals at the end of the season, they said. June sugar at the National Commodity and Derivatives Exchange was 23 rupees up at 1,688 rupees per 100 kg. July sugar contract rose 35 rupees to 1,729 rupees.
"Sugar prices are slowly inching up to the physical market level which is ruling around 1,800 rupees," said a broker in the western Indian City of Ahmedabad.
But sugar prices are likely to weaken in the coming weeks as the June-September rainy seasons gathers pace, lowering demand, traders said.
"In the summer season, there is good demand from cold drink and ice cream industry but it goes down as monsoon season comes," a New Delhi-based trader said.
Wheat futures dipped, but traders said they expected prices to rise because of concerns over lower domestic output. "Funds are heavily investing in wheat because everyone is expecting the crop to be lower," one Bombay-based broker said.
Traders expect wheat output this year to be around 71 million tonnes, about one million tonnes lower than last year. Last week, the government said it would not hesitate to import wheat in case of a supply shortage.
Domestic spot prices have risen by about 5 percent in the past one-month on fears of a lower output. June wheat at the NCDEX was trading 0.1 percent lower at 765.40 rupees per 100 kg.
July contract was 0.40 rupees down at 788.40. Poor bean arrivals helped lift soyaoil prices. June refined soyaoil at the Multi Commodity Exchange (MCX) was up 3.30 rupees at 365.90 per 10 kg.
NCDEX's June rose 4.05 rupees to 367.85. Gold fell as the yellow metal retreated from a one-month high in volatile Asian trade on Monday, with a firmer dollar making the metal costlier for holders of other currencies.
August gold at the MCX was quoted at 6,109 rupees per 10 grams, down 12 rupees from the previous close. The NCDEX's June gold fell 17 rupees to 6,098.
Spot gold was $424.90/425.60 an ounce, down from $427.00/427.70 last quoted in New York on Friday, where it hit a 1-month high of $427.70.