Sugar prices in futures move up by 3 pc
Sugar futures have shop up by three per cent on NCDEX counter on apprehensions that output may fall by 12 per cent this season on lower acreage.
By PTI |
NEW DELHI: Sugar futures, which have slipped significantly in the last three months, have shop up by three per cent on NCDEX counter today on apprehensions that output may fall by 12 per cent this season on lower acreage.
Both August and September contracts of sugar M200 grade touched upper level of 3 per cent at Rs 1,619 per quintal and Rs 1,675 per quintal.
"Fall in area under sugarcane cultivation is boosting prices in futures market," Karvy Comtrade Analyst Veeresh Hiremath said.
Till July 11, area under sugarcane cultivation has fallen to 4.3 million hectares from to 5.3 million hectares sown in the same period last year.
According to traders, a steep fall in acreage may lower production by 12 per cent this year to 22 million tons from 25 million tons in previous year.
"If the government's proposal to make 10 per cent mandatory blending of ethanol becomes effective from October 2008, then sugar output may fall further as it allows ethanol production directly from sugarcane than molasse," Hiremath said.
Religare Commodities Analyst Ajitesh Mullick said, "Investors are buying at lower levels anticipating lower sugar production in the coming season".
At 1500 hours, August contract of sugar M200 grade rose by 2.88 per cent at Rs 1,608 per quintal, September contract by 2.77 per cent at Rs 1,669 per quintal and October contract by 2.73 per cent at Rs 1,730 per quintal.
There was a sharp rise in prices of sugar S150 grade as well. August contract rose by 1.56 per cent at Rs 1,495 per quintal, while September contract by 2.43 per cent at Rs 1,520 per quintal.
Both August and September contracts of sugar M200 grade touched upper level of 3 per cent at Rs 1,619 per quintal and Rs 1,675 per quintal.
"Fall in area under sugarcane cultivation is boosting prices in futures market," Karvy Comtrade Analyst Veeresh Hiremath said.
Till July 11, area under sugarcane cultivation has fallen to 4.3 million hectares from to 5.3 million hectares sown in the same period last year.
According to traders, a steep fall in acreage may lower production by 12 per cent this year to 22 million tons from 25 million tons in previous year.
"If the government's proposal to make 10 per cent mandatory blending of ethanol becomes effective from October 2008, then sugar output may fall further as it allows ethanol production directly from sugarcane than molasse," Hiremath said.
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Religare Commodities Analyst Ajitesh Mullick said, "Investors are buying at lower levels anticipating lower sugar production in the coming season".
At 1500 hours, August contract of sugar M200 grade rose by 2.88 per cent at Rs 1,608 per quintal, September contract by 2.77 per cent at Rs 1,669 per quintal and October contract by 2.73 per cent at Rs 1,730 per quintal.
There was a sharp rise in prices of sugar S150 grade as well. August contract rose by 1.56 per cent at Rs 1,495 per quintal, while September contract by 2.43 per cent at Rs 1,520 per quintal.
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