MTECHTIPS COMMODITY MARKET NEWS 4

MTECHTIPS:-India Sugar seen bearish for short term on higher supplies

This year sweets may give you more sweet as a result of higher sugar supply followed by lower prices in both spot and future markets. The government has already asked the sugar mills to pump more sugar to the market from December to March.Earlier, spot sugar prices fell Rs. 17 to Rs. 3,405 per 100 kilogram at Kolhapur in top-producing Maharashtra state of India.Sugar prices fell because there is more supply than demand and expect sugar prices fall further - say traders in Maharashtra.Indian Sugar Mills Association has said that the country is likely to produce 24 mn tons of sugar as against the requirement of 22.5 mn tons, this year.The government has allowed sugar mills to sell 7 mn tons of sugar in the open market between December and March.Sugar futures on India's National Commodity and Derivatives Exchange (NCDEX) were down by 0.4 percent at Rs.3276 per 100 kilogram for January contract at 12.25 IST on December, 5.

MTECHTIPS:-Grains futures edge higher - soybeans climb to 4-week top

U.S. grain futures were broadly higher during European morning hours on Wednesday, with soybean prices rising to a four-week high on the back of concerns over crop prospects in South America. Agricultural commodities received an additional lift from a broadly weaker U.S. dollar, as appetite for riskier assets was boosted by signs of progress in handling the sovereign debt crisis in the euro zone.The euro climbed to a six-week high against the U.S. dollar, while the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.1% to trade at 79.57, the lowest level since October 22.A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.Meanwhile, soybean and corn futures remained supported as traders continued to eye weather conditions in Brazil and Argentina, major South American grain growers.Heavy rains in Argentina in recent days continued to delay planting of a new soy crop in key grain-growing regions across the country, while storms expected later this week in Brazil will continue to delay corn and soybean planting.

MTECHTIPS:-Soft futures edge higher, gains limited on ample global supplies

U.S. sugar and coffee futures edged modestly higher during U.S. morning hours on Wednesday, but gains were limited as top producer Brazils harvest of both commodities winds down.On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.1950 a pound, up 0.2% on the day. The March contract traded in a tight range between USD0.1946 a pound, the daily low and a session high of USD0.1956 a pound.Brazils top sugar industry group Unica said last week that sugar output in Brazils Center South-region jumped 37% in the first two weeks of November compared to the same period a year earlier.Output in the region totaled 1.74 million metric tons between November 1 and November 15.The industry group added that Sugar mills in the region will begin to shut down in greater numbers in the coming weeks as harvest comes to a close.Brazils Center South-region produces nearly 90% of the nations sugar. The South American country is the worlds largest sugar producer and exporter, with the USDA estimating the nation accounts for nearly 20% of global production and 39% of global sugar exports.Meanwhile, Arabica coffee for March delivery traded at USD1.4838 a pound, little changed on the day. The March contract was

stuck in a range between USD1.4828 a pound, the daily low and a session high of USD1.4910 a pound.