Indian sugar futures rose on Thursday on short covering a day before the settlement of monthly contracts, while wheat climbed on tight supplies. Soyaoil futures fell as a rollback of an increase in base import prices weighed on market sentiment.
The August sugar contract at the National Commodity and Derivatives Exchange (NCDEX) rose 25 rupees to 1,894 per 100 kg. The same month contract on the Multi Commodity Exchange was up 23 rupees at 1,880.
"The prices were falling this week, but now short-covering has set in," said a Mumbai-based official with a commodities firm.
"But the underlying sentiment is bearish." Wheat futures nudged higher as supplies slowed down.
The August wheat contract on the NCDEX was up 3 rupees at 957 and the same month contract on the MCX rose 15.50 rupees to 935.
Traders said millers were awaiting fresh supplies to replace their stocks.
Indian state-run agencies have signed contracts for imports of nearly 4 million tonnes so far this year, but bulk of the supplies are meant for replenishing government's buffer stocks and not for sale in the open market.
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