Expect Sugar futures to consolidate at lower levels: Angel

Angel Commodities has come out with its fundamental report on agri commodities. According to the research firm, Sugar futures are expected to consolidate at the lower levels as markets may adopt a wait and watch policy expecting government to take decision levy sugar mechanism, one of the major reforms of sugar decontrol.

Chana Futures are expected to remain under downside pressure in the coming week as the agriculture ministry has estimated bumper chana output for 2012-13 season. Also arrivals shall gain momentum in the coming days and is expected to increase the supplies in the markets. Also, higher output of Chana in other producing countries like Australia and Canada is expected to support the weak market sentiments.

Sugar futures are expected to consolidate at the lower levels as markets may adopt a wait and watch policy expecting government to take decision levy sugar mechanism, one of the major reforms of sugar decontrol. The hike in cane price and thereby increase in sugar production cost may also support prices as this may force government to take some measures to increase sugar prices.

Soybean complex may trade with downward bias taking cues from the weak international markets as USDA report raised its forecast of ending stocks. Mustard seed is expected to trade downwards on higher output expectations. CPO is expected to trade sideways during the intraday.

Pepper is expected to decline in the intraday on reports of improvement in arrivals of the fresh crop. However, low stocks coupled with thin arrivals may limit sharp downside. Winter buying demand may also support prices at lower levels.

Jeera is expected to continue to decline today on the back of commencement of arrivals of the new crop. Higher sowing figures coupled with conducive weather in Gujarat may also pressurize prices. However, overseas demand at lower levels may support prices. Demand from domestic traders and millers may also support prices at lower levels. In the medium term, prices are likely to stay firm as Syria and Turkey have stopped shipments.

Turmeric is expected to trade lower today. Higher carryover stocks and weak overseas demand may pressurize prices. However, lower output concerns and demand from stockists at lower levels is expected to support prices at lower levels.

Kapas prices may trade with upward bias during the intraday on account of bargain buying. However, sufficient supplies in the domestic markets and lower export demand expectations may pressurize prices. Also, international prices which had gained sharply in the last two weeks are due for correction amid rising certified stocks, and Chinese lunar New Year approaching.

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