Indian sugar futures fall on higher supply

Indian sugar futures fell on Monday after the government offered more stocks for sale in August, while wheat eased on adequate supply and sluggish demand. Gold prices fell and soyaoil was marginally up tracking global markets.
India last week released 100,000 tonnes of sugar, in addition to 1.1 million tonnes issued for general sale in the domestic market in August, to stabilise prices and ensure adequate supply.
The government controls sugar distribution by allocating fixed amounts that can be sold by producers every month in India, the world's biggest sugar consumer.
September sugar at the National Commodity and Derivatives Exchange (NCDEX) fell 6 rupees to 1,884 per 100 kg.
October contract was down 7 rupees at 1,886.
"There is more sugar in the market and demand is not very strong," one Bombay-based broker said. Wheat prices fell because of adequate stocks and lack of demand.
"Consumption is low because of rains and there is no shortage of stocks," one trader said. September wheat contract at the NCDEX fell 4.80 rupees to 780.40 per 100 kg.
October wheat was 6.20 rupees down to 795.80. Soyaoil prices were marginally up as Chicago Board of Trade (CBOT) soyabean futures rose in Asia on short covering after last week's sharp decline in Chicago.
September soyaoil at the NCDEX was up 0.15 rupees at 375.80 per 10 kg.
September soyaoil at the Multi Commodity Exchange (MCX) rose 0.10 rupees to 374.50 per 10 kg.
"The market is a little firm, but we don't expect much movement in soyaoil as demand is not strong and crop outlook is not very clear," one Indore-based broker said.
Soyabean sowing in India has been completed but the crop will depend on monsoon rains later this month and in September.
Gold eased tailing the trend in Asia, where it was pressured by the dollar's rise against the euro after upbeat US jobs data, but losses were modest as South African gold miners launched their first industry-wide strike in 18 years.
Gold was quoted at $436.60/437.40 an ounce, against $437.60/438.30 in late New York on Friday, after moving between $436.25 and $437.65 on a bid basis in trade.
October gold at the MCX was quoted at 6,235 rupees per 10 grams, down 5 rupees. December contract lost 7 rupees to 6,288.