Sugar prices witnessed subdued trading on mixed response from stockiest across the spot markets. Mills were expecting demand to emerge on upcoming Navaratri and Dusshera festival.
However, stockiest are waiting for next month sales quota to be announced which is likely to decide the trend in coming days.
Futures also continued to trade lower on profit booking and ended the day in red.
Factors to watch for
In EGOM meeting, sugar stock limits of 500 MT have been increased for a period of two months till
November 30
According to First Advance Estimates, sugarcane production is estimated to be 342.20 million tonnes against 339.17 million tonnes in 2010-11
Indian sugar production is estimates around 26 million tons up by 7% against 24.2 million tons last year. Countries consumption is estimated around 22 million tons annually
According to sources, till Sep. 16, 2011 sugarcane has been planted in 50-79 lakh hectare against 49.32 lakh hectares in same period last year up by 3%
Derivative Analysis (NCDEX October)
According to derivative analysis, prices, volumes and open interest have declined. It is a good indication that the price decline is being caused by disgruntled long position holders being forced to liquidate their positions.
Technicians view this scenario as a strong position technically because the downtrend will end as all the sellers have sold their positions, creating fresh buying opportunity at lower levels
Courtesy: Karvy Commtrade Ltd.
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