India sugar settles higher on short covering

The Indian sugar derivative market witnessed a choppy trend on Saturday. Market took a recovery in early trade of Saturday on short covering.
Fresh buying was seen on Saturday on expectation of emergence of retail demand for the produce as the new season has begun.
Lower sales quota fixed for April month also rendered mild support to the Indian sugar market.
Government’s decision to increase stock limit from 200 tons to 500 tons also gave support to positive trend on Saturday.
Outlook
The sugar futures are expected to trade on a positive note on Monday on emergence of fresh buying. With the commencement of new season, the demand from end users like wholesalers and retailers is likely to pick up.
Along with retail demand, buying from beverage and ice-cream industry is likely to emerge, which may push up the sugar prices in spot and futures market.
In order to balance the sugar prices, Indian government has fixed lower sale quota for the month of April. According to Sugar Release Order, 15.80 lakh tons of sugar is allocated as non-levy quota for the month of April.
The central government has also given extension for sale of 1 lakh ton of unsold March quota toll April 7. For March, non-levy quota fixed was 16.84 lakh tons.
With the rising mercury level, the demand for beverage and ice-cream is likely to pick up, which may render support to the price movement.

(Source: http://www.commodityonline.com/futures-trading/technical/India-sugar-settles-higher-on-short-covering-22969.html)