India sugar eases on supply, subdued overseas demand

August 30th, 2013

By:

Category: Sugar

(Reuters) – Indian sugar futures edged down on Thursday on surplus supplies and lower-than-expected demand from overseas buyers despite a weak rupee.

* At 0839 GMT, the key September contract was down 0.17 percent at 3,003 rupees ($44.36) per 100 kg on the National Commodity and Derivatives Exchange. It had fallen to 2,973 rupees in the previous session, the lowest level since July 19.

* “The falling rupee was expected to boost exports, but so far mills have failed to sign big deals,” said a New Delhi-based dealer. “From next month we have key festivals, which can increase local demand.”

* A weak rupee increases the returns of sugar exporters. The rupee hit a record low on Wednesday.

* Spot sugar was steady at 3,039 rupees per 100 kg at the Kolhapur market in Maharashtra state.

* Sugar output in India, the world’s biggest consumer, is expected to exceed the current year’s 25 million tonnes in the marketing year beginning October, on the back of good monsoon rains.

* Maharashtra and Uttar Pradesh, the top two sugar producers in India, have received more than normal rainfall since the beginning of the monsoon on June 1, weather department data showed, boosting prospects of higher production.   ($1 = 67.7 Indian rupees)

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