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Indian sugar futures fell on Wednesday as bulk buyers in the physical market waited on the sidelines looking for a correction before taking fresh positions. Spot prices have risen 6.10 percent in January after the government lowered its outlook for sugar production in the 2007/08-crop year to 26 million tonnes.
At 3:46 pm (1016 GMT) the February contract on the National Commodity and Derivatives Exchange was down 0.41 percent to 1,462 rupees ($37.1) per 100 kg. The March contract had eased 0.13 percent to 1,505 rupees.
"Bulk buyers are hoping for prices to cool off before buying again. Demand should pick up next month after prices have eased," said Amol Tilak, an analyst with Kotak Commodity Services Ltd. Volumes were thin ahead of the federal government's announcement on February's open sale quota.

Copyright Reuters, 2008

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