Sugar, Gur likely to trade weak to range bound: Sharekhan
Sharekhan has come out with its report on agricultural commodities. According to the research firm, Sugar and gur, prices are likely to trade weak to range-bound in near short term.
June 20, 2013 / 12:59 IST
Sharekhan's trading ideas on agricultural commodities
Sugar and gurSugar witnessed a weak tone in futures markets on comfortable supply condition. Meanwhile, buying at lower levels also expected on upcoming summer season demand.The Indian government ruled out an increase in the sugar import duties at least until the end of August to prevent a rally in local prices. Earlier, the Indian Sugar Mills Association and the National Federation of Cooperative Sugar Factories sought an increase in duties on raw and refined sugar to 30 percent from 10 percent to check cheap supplies from overseas.Indian raw sugar imports have totalled at 1.1 Million Metric tonne (MMT) between October 1 and May 23, 2013.Iraq buys 1.7 lakh MT of Brazilian, European white sugar from Louis Dreyfus and ED&F Man.Shree Renuka Sugars forecasted an 8-10 percent decline in sugar production during 213-14. The total sugar production is expected in the range of 22-22.5MMT in 2013-14 as compared with 24.5MMT in 2012-13 on lower planted area under the crop in Maharashtra and Karnataka.According to the Rabobank, Australian sugarcane area is likely to increase by 25 percent or 400,000 hectares more by 2020-21 and the domestic sugar consumption may rise to 1.7 million tonne in 2020-21.In Delhi, sugar millgate prices softened by Rs20 per quintal on reduced offtake amid regular supply from mills.According to the Ministry of Agriculture, India, sugarcane sowing planting done on 42.09 lakh hectares as on June 14, 2013.Iran Trade ministry invited bids to buy 50,000 tonne of white sugar from all origins except India and Thailand.Outlook: For both, Sugar and gur, prices are likely to trade weak to range-bound in near short term.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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