Sugar, Gur likely to trade firm in near term: Sharekhan

Sharekhan's trading ideas on agricultural commodities

• Sugar witnessed a weak tone in futures markets on profit-booking and comfortable supply condition. Meanwhile, buying at lower levels also expected on upcoming summer season demand.
• Several sugar mills drop their prices on high stocks position against reduced offtake.
• As per the Russian Ministry of Agriculture, Russian farmers planted 83 percent of the target (873300 hectare) with sugar-beet as of May 20, 2013.
• National Development and Reform Commission of China states that government will purchase 300,000 tonne of sugar with a maximum price of 6,100 yuan per tonne.
• China’s sugar imports in April surge to 360,084 tonne against the 205,349 tonne in March
• Industry group Conadesuca states that Mexico’s sugar production for 2012-13 season may surge by 6.9 percent to 6.25MMT against 5MMT output in last year Mexico is the largest sugar exporter to the USA.
• Iran released purchase tender for 50,000MT of white sugar from all origins except India, Thailand and the bid will remain open till June 9, 2013.
• Sugarcane has been planted in 40.3 lakh hectare as compared to 45.54 lakh hectare at this time in last year. Less area is reported mainly in Karnataka, Maharashtra, Tamil Nadu and Uttar Pradesh.
• Food Minister K V Thomas states that no import duty hike on sugar was imposed during the current marketing year ending September and said the government will take a decision on the issue after that.

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