Indian sugar futures stayed firm on Tuesday on lower stocks and speculation that Pakistan could buy the sweetener from its South Asian neighbour, while soya contracts were range-bound and gold fell on global trends. Wheat remained steady in the absence of any major factors. July sugar at the National Commodity and Derivatives Exchange rose 9 rupees to 1,832 per 100 kg. August sugar was up 6 rupees at 1,853.
"Sugar has tightened a bit with stocks depleting and a price correction is taking place," one trader said.
Sugar futures prices had firmed in the last week on increased purchases and talk that Pakistan might buy sugar from India to bridge a supply shortfall, traders said.
An official with the state-run buying agency in Pakistan told Reuters on Monday the country would aim to buy up to 100,000 tonnes of refined sugar this week, but Indian supplies would not be considered for these purchases.
Masood Alma Rizvi, chairman of Trading Corporation of Pakistan, said a ban on Indian sugar would remain in place but Karachi traders said the government could consider Indian sugar in future tenders if global traders quote high prices.
Soya futures were range-bound amid a delay in soyabean sowing in about 25 percent of the growing region in the central state of Madhya Pradesh, as farmers wait for rain. Most parts of the country have been getting good rains but the monsoon has been weak in western parts of Madhya Pradesh. July soyabeans at the NCDEX lost 0.11 percent to 1,316 rupees per 100 kg while the August soyameal increased 89 rupees to 9,407 per tonne.
Gold futures fell in line with world spot prices. Gold fell to a three-week low in Asia on Tuesday before rebounding as fresh physical demand emerged to help bullion resist a stronger US dollar.
Spot gold was quoted at $426.65/$427.05 an ounce, down from $427.30/$428.00 an ounce last traded in London on Monday, but above a three-week low of $425.60 hit in Asian trading.
August gold at the Multi Commodity Exchange fell 8 rupees to 6,113 per 10 grams, while October was down 5 rupees at 6,177. "Gold will be on the downside the entire week and will be in the $418-428 range," said a Bombay-based bullion dealer.
"There is no reason for it to go up." Wheat prices remained steady with August prices at NCDEX quoted 0.02 percent lower at 801.20 rupees per 100 kg.