(Reuters) – Indian sugar futures fell on Monday to their lowest level in more than two years as most factories started the new crushing season with ample carry-forward stocks amid sluggish demand from bulk consumers.
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.
The key January contract finished down 0.74 percent at 2,808 rupees ($45)per 100 kg on the National Commodity and Derivatives Exchange. It fell to 2,794 rupees earlier in the day, the lowest level since Nov. 8, 2011.
India’s sugar production won’t be affected by a nearly month-long delay in sugar cane crushing by mills due to a price row with growers as most mills have restarted operations now, a senior industry official said.
Spot sugar nudged a rupee down to 2,878 rupees per 100 kg at the Kolhapur market in Maharashtra.
OILSEEDS AND SOYOIL
Indian soybean futures rose following gains in the overseas market and on good demand in local spot markets amid limited supplies.
Soyoil and rapeseed eased on a drop in overseas edible oil prices and a strong rupee.
U.S. soybeans rallied after the U.S. Department of Agriculture reported weekly export sales of U.S. soybeans at 1.77 million tonnes, combining old and new crop years, which was above trade expectations.
The key January soybean contract finished up 0.57 percent at 3,909 rupees per 100 kg, while the January soyoil contract eased 0.07 percent to 716.25 rupees per 10 kg.
The rapeseed contract for January edged down 0.24 percent to 3,802 rupees per 100 kg.
At the Indore spot market in Madhya Pradesh, soybeans eased 22 rupees to 3,932 rupees per 100 kg, while soyoil edged down 4.40 rupees to 705.15 rupees per 10 kg. At Jaipur in Rajasthan, rapeseed fell 25 rupees to 3,800 rupees.
GUAR SEED
Indian guar seed futures dropped on weak cues from the spot market where supplies from the new season crop were higher.
The December contract finished down 0.85 percent at 4,660 rupees per 100 kg.
Spot guar fell 78 rupees to 4,622 rupees per 100 kg at Jodhpur, a key market in Rajasthan.
CHICK PEAS
Indian chana, or chickpea, futures dropped due to ongoing sowing, conducive weather and tepid local demand.
The December chana contract fell 0.69 percent to 3,007 rupees per 100 kg.
Spot chana fell 57 rupees to 3,017 rupees per 100 kg in Delhi.
TURMERIC
Indian turmeric futures fell due to subdued demand for exports amid large carry-forward stocks, while the approaching new season supply also weighed on sentiment.
The key December contract closed down 1.58 percent at 4,982 rupees per 100 kg.
Excessive rains in Andhra Pradesh, the top turmeric cultivating state, have raised concerns over the quality of the crop, spot traders said.
JEERA
Indian jeera futures fell on sluggish local demand and prospects of a better crop.
The actively traded jeera for December delivery fell 1.33 percent to 12,367.5 rupees per 100 kg.
Spot jeera fell 90 rupees to 12,800 rupees per 100 kg at Unjha, a key market in Gujarat.
