Indian sugar steady as export hopes offset supply
Category: Sugar
(Reuters) – Indian sugar futures were steady on Tuesday as hopes of a pick-up in exports offset surplus supplies and lower-than-expected festive season demand.
* The key December contract was down 0.07 percent at 2,892 rupees ($47.02) per 100 kg on the National Commodity and Derivatives Exchange at 0859 GMT. It fell to 2,850 rupees in the previous session, the lowest level since June 13, 2012.
* “In the last few days, demand has improved due to Diwali but it is less than expected. It may improve in the coming days,” said a dealer based in the Vashi market, near Mumbai.
* The country will celebrate the Hindu festival of Diwali in the first week of November. Sugar demand from bulk consumers usually rises ahead of Diwali.
* India started the new sugar marketing year with carry-forward stocks of 8.8 million tonnes. In addition, it is expected to produce 25 million tonnes this year, compared with a demand of 23 million tonnes.
* A pick-up in exports can help mills in trimming inventory and can support prices, dealers said.
* Indian traders have struck deals to export about 175,000 tonnes of raw sugar for December-January delivery, marking their first sale in the new season started on Oct.1
* Spot sugar was down 2 rupees at 2,870 rupees per 100 kg at the Kolhapur market in the top producing Maharashtra state. ($1 = 61.5000 Indian rupees)
