SUGAR

FUNDAMENTALS

Sugar traded steady at the spot markets on weak demand amidst restricted supply from mills in the wake of 64 mills having been issued recovery certificates. The prices are expected to fall in the coming days as the festive demand subsides and crushing of new crop gains momentum. 141 mills in UP are expected to begin crushing operations on November 11. Meanwhile, farmers in UP are reportedly selling cane to mills at prices lower than SAP since they are keen to clear their fields to plant wheat. Besides, a larger portion of sugarcane is being sold to gur manufacturers. Sri Lanka may boost purchases of sugar next year after the govt. cut import tax to stem inflation and drought damaged the local crop, which is likely to help India cut sugar reserves.

TECHNICALS

Candlestick pattern suggests indecision in the market; as does a flat RSI in the overbought region. Prices remain above the short term EMAs, indicating a firm market, while Stochastic is rising in the neutral region, supporting further uptrend. MACD is rising in the positive territory, showing gain in bullish momentum. Sugar futures are expected to trade range-bound to firm in the next trading session. Trade with caution as possibility of technical correction cannot be ruled out.

WEATHER

Late season rains in the north and south India aid developing sugarcane crop.

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