India sugar continues bearish trend on short selling

The bearish trend in the sugar derivative market has been extended on Thursday on continued selling pressure.
Poor month-end off-take of the produce and millers intention to clear off their monthly quota added bearish sentiment to the market.
Futures market moved in line with weak spot market sentiment. Millers were in hurry to complete their March month sale quota before the month end. As a result of this, spot prices declined marginally.
Bulk-buyers and wholesale traders were away from active buying. Bumper sugar production in the country has been putting pressure on the market.
Outlook
The bearish trend in sugar futures market will be extended on Friday on continued selling pressure.
Bumper sugar production and restriction of free trade of sugar is likely to keep the prices under pressure.
However, we may see mild recovery in the prices because of short covering. Market participants are waiting for announcement of sugar release order for the month of April. According trade sources, sale quota for April is likely to be around 15.80-16 lakh tons. Government may extend timeline for sale of unsold March quota.
For March month, central government had allocated 16.84 lakh tons of sugar as free sale quota. Sugar price at Vashi market quoted in the range of `2781-2831 per quintal for S grade and `2800-2860 per quintal for M grade.
We are expecting emergence of buying in later part of the day and in the short term as new month has started which demands more sugar from retailers.

(Source: http://www.commodityonline.com/futures-trading/technical/India-sugar-continues-bearish-trend-on-short-selling-22960.html)