Indian sugar futures rise

Indian sugar futures rose on Friday on short covering after four straight sessions of losses. However, the gains are likely to be short lived in the absence of fresh market triggers, analysts said. At 1.55 pm (0825 GMT) the August contract was up 0.32 percent at 1,270 rupees ($31.5) per 100 kg.
The September contract had risen 0.39 percent to 1,295 rupees. "Participation is very low and the market is waiting for clear direction," said Dinette someone, an analyst with Indiabulls Commodities Pvt. Ltd. On Friday's small correction may reverse in later trade, as the market remains flooded with supplies, an Ahmedabad-based analyst said.
India is likely to produce 28.5 million tonnes of sugar in the year to September 2007, up from 19.3 million tonnes a year ago. The country consumes 19-20 million tonnes annually.