Indian sugar and soyaoil futures fell on Tuesday, shrugging off a forecast of below average monsoon rains, but wheat prices rose with farmers holding back their stocks, brokers said., May sugar on the National Commodities and Derivatives Exchange had fallen 6 rupees to 2,036 rupees, while the June contract was down 4 rupees at 2,102 rupees.
"The sugar market has declined because of an additional quota announced by the government," a New Delhi-based trader said. India regulates sugar distribution to control prices in the world's largest sugar-consuming market, allocating fixed quantities that can be sold by mills every month.
The government last week released 125,000 tonnes of additional sugar for northern states. India's weather office said on Monday that this year's monsoon rains were likely to be "just below normal" at 93 percent of the long-term average.
Soyaoil futures fell on profit taking but prices were expected to rise later this week, brokers said.
The May soyaoil contract at the NCDEX was down 3.10 rupees at 413.30 per 10 kg, while the June contract fell 2.50 rupees to 420.
Wheat prices rose due to a lack of market arrivals. "Farmers are holding back their stocks and prices are likely to rise," said a trader. The May wheat contract on the NCDEX rose 9.40 rupees to 893.80 rupees, while the June wheat contracts slipped 9.60 rupees at 937.40 rupees.
Indian wheat prices have been rising on expectation output this year will be lower than the government's forecast of 73 million tonnes. India's annual demand of the grain is between 70-72 million tonnes, and the government needs to maintain a large stockpile to control prices.
The government last week announced plans to import three million tonnes of wheat to boost supplies, and raised the market support price to 7,000 rupees per tonne from 6,500 rupees.
Comments
Comments are closed.