Saturday, January 19, 2008

Sugar Futures Firm On Low Production

Mumbai: Sugar futures were firm as there were expectations of lower sugar production. February contract on NCDEX opened higher with a gap.

Futures contract made an intra-day high of Rs 1,503 per tonne and an intra-day low of Rs 1,470 per tonne.

The contract closed nominally lower at Rs 1,500, up by Rs 30 from previous close.

Rising international sugar prices have created additional interest in the exporter community, said an analyst.

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In the international futures market, white sugar for March delivery gained $13.8 and closed at $351 per tonne in London. While raw sugar futures for March delivery gained 0.68 cent and closed at 12.45 cents a pound in US.

However the overall production of the sweetener is expected to be lower due to a long period of delay in crushing, said an analyst. As a result the prices are expected to be on a bullish trend, he added.

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