Indian sugar futures jumped on Monday on concerns over production and on hopes the government will approve incentives to mills. "Futures rose on expectations the government will provide some kind of incentives to the sugar industry," said Ashok Jain, president of the Bombay Sugar Merchants Association (BSMA). India could for the first time pay sugarcane farmers in part for produce sold to debt-laden mills, as part of efforts to help politically strong growers as well companies struggling with a global glut.
At 1228 GMT, the most active December sugar contract on the National Commodity and Derivatives Exchange was 3.68 percent higher at 2,736 rupees per 100 kg. Thousands of acres of India's sugar crop are suffering severe damage from a faltering monsoon, with some farmers in the world's second-biggest grower forced to feed withered cane to cattle in the top producing state.
OILSEEDS AND SOYAOIL Indian soyabean futures rose on a drop in production, though sluggish meal exports capped the upside. Rapeseed rose on a delay in the sowing of the winter-sown oilseed due to higher temperature. The December soyabean contract rose 1.4 percent to 3,928 rupees per 100 kg, while December rapeseed futures jumped 2.2 percent to close at 4,907 rupees per 100 kg.
The soyaoil contract for December delivery was 0.51 percent higher at 604.60 rupees per 10 kg. India's oilmeal exports slumped a record 94.3 percent in October from a year earlier, and soyameal makes for the bulk of the South Asian nation's overseas meal shipments.
CORN, WHEAT The December corn futures edged up 0.46 percent to 1,530 rupees per 100 kg, while the December wheat contract edged down 0.48 percent to 1,644 rupees per 100 kg.
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