Angel Commodities’ report on Sugar
Sugar Futures unchanged on Thursday. However, good domestic supplies and steady physical demand is pressurizing prices during last one month. India’s sugar production is set to rebound from a seven – year low as above – normal monsoon rain in the world’s largest consumer helps the cane crop that will be crushed from Oct. 1. According to government data, Sugarcane acreage in the country was at 47. 5 lakh ha, higher than 44.8 lakh ha a year ago. ICE Raw sugar futures were slightly lower on Thursday as a favourable outlook for 2017/18 crops kept the market on the defensive. Market participants are now focusing on expected surplus in the 207/1season. CFTC data shows, speculators raised their net short positions in raw sugar contracts to the highest since April 2015.
Sugar futures may trade sideways to higher as spot prices have improved despite sufficient supplies in the domestic market. Increase in FRP is encouraging farmers to take sugarcane crop while good sowing progress in the country will keep pressure on the sugar prices.