Indian sugar falls on settlement

20 Jun, 2006

Indian sugar futures fell on Monday ahead of the monthly settlement on a key commodities exchange, while soyaoil lost in anticipation of higher supplies.
Wheat futures were down marginally. The June sugar contract on the Multi Commodities Exchange (MCX) had fallen 20 rupees to 1,906 rupees per 100 kg, while at the National Commodities and Derivatives Exchange the same month contract was down 25 rupees at 1,889.
"There is some liquidity pressure ahead of the expiry of the June sugar contract tomorrow. It should ease off after that," said a Mumbai-based analyst with a commodities firm.
Traders without sufficient stocks to back their positions usually sell ahead of the monthly settlement, which is June 20 on the NCDEX.
Soyaoil futures were down in anticipation of higher supplies as the annual monsoon rains showed some signs of a revival after a near two-week lull.
Sowing of the soya crop is timed to coincide with the rains, traders said, and stocks of unused seeds then begin to arrive in the market.
The June soyaoil contract at the NCDEX had lost 2.10 rupees to 410.60 per 10 kg. The July contract at the MCX fell 25 rupees to 1,889. Wheat futures fell marginally.
The June wheat contract at the NCDEX fell 2.20 rupees to 844 per 100 kg.
The June contract at the MCX was down 2.40 rupees at 879.

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