Sugar Futures jumps higher on anticipation of good physical demand from Industry as supplies have been constant. In another development, Maharashtra government seeks differential pricing for sugar where industrial buyers have to pay more while retail consumer pays less. There are reports of rebound of sugarcane production in the next year due to higher acreage. As per USDA, India’s sugar production in marketing year (MY) 2017/18 (Oct-Sept) is expected to increase by 18% to 25.8 mt. Moreover, government extends curbs on holding of sugar stocks by six months for the sugar dealers and traders.

Outlook

Sugar futures may trade sideways to higher on expectation of improvement in physical demand from industrial buyers. However, balanced demand and supply levels in the physical market may keep prices range bound.

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