Indian sugar hits 1-week low on rising supply, weak demand
Category: Sugar
(Reuters) – Indian sugar futures fell on Friday to their lowest in a week on sluggish demand from bulk consumers amid rising supplies from ongoing cane crushing.
* The key June contract on India’s National Commodity and Derivatives Exchange was down 0.34 percent at 2,952 rupees ($54.81) per 100 kg at 0857 GMT, after hitting a low of 2,949 rupees earlier.
* “Usually, prices rise around this time of the year due to demand from bulk consumers. This year the market is over supplied, which is not allowing prices to move higher,” said Prasoon Mathur, a senior analyst with Religare Commodities.
* Demand for sugar from ice-cream and beverage makers typically rises during summer.
* Spot sugar eased 5 rupees to 3,035 rupees per 100 kg in Kolhapur market in top-producing Maharashtra state.
* India is likely to produce 24.6 million tonnes of sugar in 2012-13, an industry body has said, against an annual demand of about 23 million tonnes.
* Indian sugar mills produced 24.52 million tonnes of the sweetener between Oct. 1, 2012 and April 30, about 3 percent less than a year earlier, a leading industry body said.
* New York raw sugar futures were trading down 0.28 percent 17.55 cents a lb. ($1 = 53.8550 Indian rupees) (Reporting by Rajendra Jadhav; Editing by Prateek Chatterjee)
