Indian sugar futures rose for a second straight day on Tuesday on renewed expectations that an export ban would soon be lifted, while soyoil futures fell on weaker international markets. Wheat futures gained on bargain buying after a week-long fall in prices.
December sugar futures on the National Commodity and Derivatives Exchange (NCDEX) were up 3 rupees at 1,746 rupees per 100 kg, while January futures were higher by 4 rupees at 1,737.
"The news that the ban on sugar exports would be soon lifted is getting stronger and stronger. This is impacting sentiment as it would provide an opportunity to take advantage of a bumper cane crop," said a Mumbai-based commodities trader.
India, the world's second-largest producer and biggest consumer of sugar, banned sugar exports in July to help check inflation as prices soared.
The government said the ban would last until the end of the financial year in March, but has since suggested it could be lifted earlier.
India is poised to produce a record 22.7 million tonnes of sugar in the current sugar season, up from about 19 million tonnes in the last season, industry officials forecast. After falling over the past week to six-week lows, wheat futures also rose as investors bought at the lower prices. "Fundamentally, nothing has changed and the undertone remains bearish. It is only a technical consolidation," said a Mumbai-based commodities trader.
The December wheat contract on the NCDEX was up 1.60 rupees at 1,058 rupees per 100 kg, while the January contract rose 4.80 rupees to 1,085.20 rupees per 100 kg.
India was forced to import wheat this year for the first time in six years following a poor crop, and a large portion of the contracted wheat has arrived. Soyoil futures fell on weak international markets. The December soyoil contract on the Multi Commodity Exchange (MCX) was down 1.10 rupees at 459.55 rupees per 10 kg, while the January contract fell 0.95 rupees to 469.55.
Comments
Comments are closed.