Indian wheat futures rose on Tuesday due to fears crop output be hit by a sudden rise in temperatures in growing regions, while sugar futures were up on bargain buying. Soyaoil was down with other cheaper oils cutting into demand.
February wheat futures on the National Commodity and Derivatives Exchange (NCDEX) were up 3.80 rupees to 1,023 rupees, while the March contract had risen 2.40 rupees to 951.60.
Traders said unseasonally warm weather in February had sparked concern about wheat output, despite a bullish government forecast of 74 million tonnes. Last year, a rise in February temperatures clipped output and forced India to import wheat for the first time in six years. "Spot prices in some northern Indian markets have risen, which is impacting the futures market," said a Mumbai-based commodities dealer.
But she said a government decision last week to release up to 400,000 tonnes of wheat in February and March into the open market would keep the broader trend bearish for the February and March contracts. Sugar futures rose on bargain hunting after a sharp fall in prices the previous day. March sugar futures on the NCDEX rose 9 rupees to 1,552 rupees per 100 kg while the February futures were up 5 rupees to 1,564.
Traders said exports of sugar after the government lifted a ban last month were not yet fuelling prices, but their impact would be felt once shipments gather pace. Soyaoil futures were down as a rush of supplies of cheaper cotton oil cornered demand. The February soyaoil contract on the Multi Commodity Exchange (MCX) had lost 1.75 rupees to 449.50 rupees per 10 kg, while the March contract at NCDEX was down 1.90 rupees at 461.20 rupees.
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