Indian sugar futures climbed on Monday on hopes for more export orders in the coming weeks, while the current month contract was boosted by short covering to head off penalties. At 2:18 pm (0848 GMT), the December contract on the National Commodity and Derivatives Exchange was up 0.63 percent at 1,284 rupees ($32.7) per 100 kg, while the January contract rose 0.80 percent to 1,258 rupees.
The November contracts jumped 6.06 percent to 1,435 rupees, as low deliveries ahead of the expiry on November 20 triggered sellers to cover their positions. Deliveries so far have been just 1,653 tonnes, compared with more than 4,000 tonnes in October, because sellers have been unable to meet quality specifications. Traders said sellers were covering their positions to ward off penalties that would be slapped on them if they fail to make deliveries.
The far-month contracts were buoyed by a pick up in export orders in recent weeks. "Very soon more fresh orders may be booked," Lopa Sanghvi, analyst with Anand Rathi Commodities Ltd, said. India, the world's largest sugar consumer, has emerged as a major net sugar exporter in 2007/08 grabbing nearby markets like Dubai from competitor Brazil, because of surging freight costs.
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