Indian sugar futures were mixed on Wednesday on higher supplies from mills, while soyaoil was down with the start of sowing. Wheat eased as monsoon rains helped sentiment for the next year's crop. The July sugar contract at the National Commodity and Derivatives Exchange (NCDEX) was down 8 rupees at 1,895 per 100 kg.
The same month contract on the Multi Commodity Exchange (MCX) was 4 rupees higher at 1,912. "The supplies of sugar from mills are higher with the start of the new month as they have got fresh quotas for sale," said a Mumbai-based trader. The government controls sugar prices by allocating a fixed quota to sugar mills for sale in the open market every month. Any unsold portion will have to be given to state-run welfare schemes at lower prices.
Absence of Hindu festivals in July also weighed on prices, as the demand for sweets and confectioneries was low, the Mumbai trader said. "The festival demand will pick up only from August-September," she said.
"Sugar futures will remain bearish this month." Soyaoil futures were down with good monsoon rains giving a boost to sowing. "The leftover stocks of seeds would not flow into the market with the sowing," said an Indoor-based trader.
The July soya oil contract at the NCDEX dropped 2.80 rupees to 401.10 per 10 kg, while the same month contract at the MCX was down 5.15 rupees at 399.70. Wheat futures were also down with the rains giving a fillip to sentiment about next year's crop.
The July contract at the NCDEX dropped one rupee to 834.20 per 100 kg. The same month contract on the MCX was 4.20 rupees lower at 845.90.