September 12, 2013
Indian sugar futures fell on Wednesday, extending losses for the second consecutive day, as plentiful monsoon rains have raised prospects for higher output for the fourth straight year. The key October contract was down 0.63 percent at 2,980 rupees ($46.59) per 100 kg at 1041 GMT on the National Commodity and Derivatives Exchange.
“Normally, three years of surplus production is followed by lower output, but next year’s production is expected to be higher, especially when mills have a huge surplus,” said a New Delhi-based trader with the Indian unit of a global trading company. Sugar output in India, the world’s biggest consumer, is expected to exceed the current year’s 25 million tonnes in the marketing year beginning October, higher than the local demand of around 23 million tonnes.
Maharashtra and Uttar Pradesh, the top two sugar producing states in India, have received more rainfall than normal since the start of the monsoon in June, data from the weather department data showed, boosting prospects of higher production. Spot sugar was at 3,353 rupees per 1 00 kg at the Kolhapur market in Maharashtra state, down from 3,390 rupees per 100 kg the previous day. Commodities house Czarnikow has nearly halved its forecast for the global sugar surplus in 2013/14 to 2 million tonnes, far below the prior season’s 9.5 million tonnes. Courtesy Reuters
Published in ZaraiMedia.com