India sugar, oilseeds drop; guar jumps on demand

(Reuters) – Indian sugar futures dropped on Wednesday to their lowest in nearly one-and-a-half years on ample supplies amid softening demand due to the winter season.

The key December contract closed down 0.74 percent at 2,807 rupees per 100 kg on the National Commodity and Derivatives Exchange. It fell to 2,804 rupees earlier in the day, its lowest since June 8, 2012.

Sugar cane crushing normally starts in the first week of November in Maharashtra and Uttar Pradesh, the country’s top two producing states, but this year it has been delayed as farmers and mills couldn’t agree over cane price.

India started the new sugar marketing year with carry-forward stocks of 8.8 million tonnes. It is expected to produce 25 million tonnes this year against a demand of 23 million tonnes.

Spot sugar eased 3 rupees to 2,873 rupees per 100 kg at the Kolhapur market in Maharashtra.

OILSEEDS AND SOYBEANS

Indian soybean futures fell on profit-taking, while soyoil slipped as gains in the currency made imports cheaper.

A strong rupee makes edible oil imports cheaper, and promises lower returns from oilmeal exports. The rupee gained on Wednesday.

Rapeseed was down as gains in the local currency hinted at less returns from exports of rapeseed meal to the South Asian countries where the oilmeal is used as animal feed.

The key December soybean contract finished down 1.73 percent at 3,896.50 rupees per 100 kg.

The key December soyoil contract fell 1.18 percent to 731.5 rupees per 10 kg, while the rapeseed contract for December dropped 1.17 percent to 3,816 rupees per 100 kg.

At the Indore spot market in Madhya Pradesh, soybeans fell 17 rupees to 3,933 rupees per 100 kg, while soyoil eased 1.90 rupees to 725.10 rupees per 10 kg. At Jaipur in Rajasthan, rapeseed edged up 4 rupees to 3,828 rupees.

CHANA

Indian chana, or chickpea, futures eased on higher stocks, though concerns that farmers in the top producing Madhya Pradesh state may divert area under the pulse to wheat limited the downside.

Chickpea is a winter-sown crop, sowing for which starts in October. Key growing areas have received ample rainfall, which is expected to smoothen the sowing process.

The December chana contract closed down 0.25 percent at 3,147 rupees per 100 kg.

Spot chana rose 19 rupees to 3,119 rupees per 100 kg in Delhi.

India has raised the price the government must pay to farmers for buying next year’s chana to 3,100 rupees per 100 kg from 3,000 rupees a year earlier.

GUAR SEED

Indian guar seed futures rose tracking firm cues from the spot market where demand from mills was good, though an increase in spot supplies and expectations of higher output limited the upside.

Supplies into local markets from the new harvest have started gaining pace.

The December contract jumped 3.62 percent at 5,150 rupees per 100 kg.

Spot guar rose 100 rupees to 5,000 rupees per 100 kg at Jodhpur, a key market in Rajasthan.

JEERA

Indian jeera futures edged up due to some demand in the local market, though expectations of better sowing capped the gains.

The actively traded jeera contract for December delivery closed up 0.45 percent at 12,412.5 rupees per 100 kg. It had hit a contract low of 12,307.5 rupees on Nov. 11.

At Unjha, a key market in Gujarat, spot jeera was 28 rupees up at 12,875 rupees.

TURMERIC

Indian turmeric futures rose, tracking positive cues from the spot market that helped offset mounting carry-forward stocks and lower-than-expected exports.

The most-actively traded turmeric contract for December delivery finished up 3 percent at 4,882 rupees per 100 kg.

At Nizamabad, a key market in Andhra Pradesh, spot turmeric rose 61 rupees to 4,921 rupees per 100 kg.