Indian sugar futures end up on govt incentives; guar falls

(Reuters) – Indian sugar futures ended higher on Thursday and could extend gains in the next trading session after the government granted the much-awaited subsidy for raw sugar output late on Wednesday. Guar futures are seen opening weaker on Friday on higher production and carry-forward stocks.

SUGAR

Sugar futures rose more than 1 percent on Thursday and are seen opening stronger in the next trading session due to government subsidy for raw sugar production.

India on Wednesday granted a subsidy for raw sugar output to tackle a chronic surplus of the refined product. [ID: nL3N0LH58H]

“This incentive would help in arresting the downside in prices. In the short term, sugar prices may rise by 15-20 rupees per 100 kg,” said Mukesh Kuwadia, the secretary of the Bombay Sugar Merchants Association.

The key March contract ended up 0.73 percent at 2,769 rupees per 100 kg on the National Commodity and Derivatives Exchange (NCDEX) after hitting an intra-day high of 2,783 rupees.

GUAR

Guar seed futures fell on Thursday and are seen trading weaker on Friday, weighed down by mounting stocks from the old crop and large harvest this season.

The March contract ended down 2.45 percent at 4,980 rupees per 100 kg on the NCDEX.

TURMERIC

Turmeric futures rose on Thursday and are likely to trade stronger in the next session on fresh export demand though hopes of a rise in supplies from the new season crop may cap gains.

The most-actively traded turmeric contract for April delivery ended up 2.68 percent at 7,420 rupees per 100 kg on the NCDEX.

CHICKPEAS

Chana, or chickpea, futures ended higher on Thursday and are likely to trade rangebound on Friday as large stocks and higher acreage under the pulse are seen offsetting demand from stockists.

The April chana contract ended up 1.43 percent at 3,054 rupees per 100 kg.

OILSEEDS

Soybean and soyoil futures ended up on firm cues from the international market on Thursday and could extend gains in the next session on slack soybean supplies in the local market.

Rapeseed futures are seen opening rangebound on expanded acreage and expectation of higher production.

“Thin soybean supplies are supporting prices but sluggish exports of soymeal are restricting any sharp gains,” said Faiyaz Hudani, associate vice-president, research, at Kotak Commodity Services Ltd.

U.S. soybean futures rose on expectations for strong export data from the U.S. Department of Agriculture.

The key March soybean contract ended up 0.46 percent at 3,905.5 rupees per 100 kg on the NCDEX, while the March soyoil contract edged up 0.64 percent at 687.95 rupees per 10 kg.

The key April rapeseed contract closed up 0.63 percent at 3,368 rupees per 100 kg.

JEERA

Cumin seed, or jeera, futures rose on buying at lower prices on Thursday, but could open weaker in the next session because of new season supplies and hopes of higher production.

The actively-traded jeera contract for March delivery ended up 0.11 percent at 11,822.5 rupees per 100 kg on the NCDEX.