Indian sugar futures were mixed on Tuesday due to selling pressure on the settlement date at a key commodities exchange, while soyaoil was down in expectation of higher supplies. Wheat futures gained marginally.
The June sugar contract on the Multi Commodities Exchange had risen 6 rupees to 1,905 per 100 kg, while at the National Commodities and Derivatives Exchange the same month contract was down 7 rupees at 1,873.
Traders without sufficient stocks to back their positions usually sell near the monthly settlement date, driving down prices. Others buy stocks to make up any shortfall and then square up positions on the settlement date.
This has the opposite effect on prices. Soyaoil futures fell in anticipation of higher supplies in the market. The June soya oil contract at the NCDEX had lost 0.45 rupees to 398.55 per 10 kg. The July contract at the Multi Commodity Exchange (MCX) fell 0.15 rupees to 408.25.
Wheat futures rose slightly with scanty monsoon rains affecting sentiment. There have been only light showers since June 6 and rainfall is likely to be below normal this month, say weather officials. The June wheat contract at the NCDEX rose 6.20 rupees to 848.80 per 100 kg. The June contract at the MCX was up 3.30 rupees at 884.