MTECHTIPS;-NCDEX Sugar bearish; short covering expected, support 2970

MTECHTIPS;-NCDEX Sugar bearish; short covering expected, support 2970

The trend in sugar futures on India's National Commodity and Derivatives Exchange (NCDEX) for June delivery looks bearish and short covering is expected at current levels.“Support for the commodity is seen at 2970 while 3080 is the resistance. Traders may sell around 3055 with the stop loss of 3080 for the target of 2970,” said Milan Shah, Research Analyst at Commodity Online .NCDEX sugar for June delivery was seen trading up by 0.1% at Rs.3023 per 100 kgs as of 12.45 PM IST on Monday.Sugar prices at both physical and futures markets look bearish due to poor spot market demand and concerns over sugar imports.Ample supply of the commodity is also blamed for current bearish trend.The US Department of Agriculture (USDA) estimates FY 2013 sugar imports of US at 2.903 mn short tons, raw value (STRV), a reduction from last month of 133,000 STRV, according to its latest report.The decrease stems from a 100,000 STRV reduction in other program imports (re-export program) and an increase in tariff-rate quota (TRQ) shortfall of 60,000 STRV.The USDA forecasts FY 2014 sugar imports at 3.438 mn STRV, an increase over last year of 535,000 STRV. The largest change from FY 2013 is increased imports from the re-export sugar program (up 275,000 STRV), followed by lower shortfall—forecast at a high 200,000 STRV but still 260,000 STRV lower than that estimated for FY 2013.
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