Kapas futures may trade sideways holding support above 850 levels on hopes that demand from exporters and mills will rise and as farmers hold stocks awaiting prices to rise further.
Sugar futures may trade steady to firm supported by improved local demand at the beginning of the month and considering the lower free-sale quota for the month.
Sugar prices in Maharashtra have increased by Rs 30-Rs 40 in the last two days, after the announcement of the quota for February.
Morale in the spot market was firm at the upper level. Guar complex may trade sideways, being gains remaining capped owing to profit booking from higher levels.
The total special margin on the long side is now 50% inclusive of the cash margin, effective Feb. 7, 2012. Whereas, the special margin on short positions of guar gum and seed remains unchanged at 10 percent.
Courtesy: SMC Global
Looking for a trading partner? visit commodityonline.com/franchisee
