Indian sugar futures rose on Monday to their highest in nearly a month due to a rise in overseas prices and concerns over next year's production as the weather department forecast lower rainfall in cane growing areas. India's monsoon is expected to bring below-average rainfall this year, with precipitation between June and September between 90 and 96 percent of the long-term average, Earth Sciences Minister Jitendra Singh said on Monday.
India's rice and cotton growing areas are expected to receive deficient monsoon rains, while the soyabean growing central region should receive below-average rainfall. Sugar futures are likely to extend gains on Tuesday as demand from bulk consumers is expected to rise due to a heat-wave in northern India. At GMT 12:56, the key July contract on the National Commodity & Derivatives Exchange was up 0.73 percent at 3,044 rupees per 100 kg, after rising to 3,061 rupees earlier in the day.
OILSEEDS, SOYAOIL Indian oilseeds and soyaoil futures edged higher on concerns over soyabean production as oilseed-growing central India is likely to receive less than normal rainfall in 2014. Oilseed and soyaoil futures are likely to open higher on Tuesday on robust demand in spot market. The key July soyabean contract closed up 0.31 percent at 4,268 rupees per 100 kg, while the July rapeseed contract edged up 0.29 percent to 3,449 rupees per 100 kg. The July soyaoil contract was up 0.54 percent at 663.40 rupees per 10 kg.
GUAR SEED Guar seed futures rose on concerns that production in the next season may drop as lower than normal rainfall has been forecast for north-western India. The July contract ended up 0.59 percent at 5,155 rupees per 100 kg.
TURMERIC Turmeric futures fell on weak exports demand, though concerns over next year's output due to a forecast of lower rainfall restricted the downside. The key July contract finished down 1.07 percent at 5,928 rupees per 100 kg.
CUMIN SEED Jeera, or cumin seed, futures dropped on sluggish demand in the spot market. The key July contract fell 0.78 percent to 10,825 rupees per 100 kg.
CHICKPEA Chana, or chickpea, futures fell following a sharp drop in spot market due to weak demand. Futures are likely to rebound in the next session on lower-level buying. The July chana contract dropped 2 percent to 2,788 rupees per 100 kg.
CORN, WHEAT Corn and wheat futures eased, tracking losses in the overseas market. Chicago corn slipped on Monday to give up some of the previous session's gains, falling for seven days out of eight, as near-perfect crop weather in the US Midwest buoyed expectations of record production. The July corn contract was 2.08 percent lower at 1,081 rupees per 100 kg, while July wheat slipped 1.7 percent to 1,502 rupees per 100 kg.
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