Indian sugar futures hit six-month high
Indian sugar futures jumped on Wednesday to hit their highest level in over six months on an estimat…Indian sugar futures jumped on Wednesday to hit their highest level in over six months on an estimated drop in production and expectations of higher demand during the summer season, dealers said. At 1022 GMT, the key April contract was 1.31 percent up at 3,013 rupees ($49.46) per 100 kg on the National Commodity and Derivatives Exchange after hitting a high of 3,022 rupees earlier in the day, the highest level since September 5, 2013.
Indian Sugar Mills Association last week trimmed the production estimate for 2013/14 season to 23.8 million tonnes from 25 million tonnes forecast earlier. "With a rise in temperature, demand will also rise for sugar in coming weeks," said Ashok Jain, president of the Bombay Sugar Merchants Association. Demand for sugar from ice-cream and beverage makers typically rises during the summer.