Reports have it that some funds are aiding the speculators in a big way in pushing the prices to unseen territories. Making the most of the surging future prices were their counterparts in the spot markets who are with holding their stocks anticipating further price rise. Overall the commodities that ended the day in green dominated the breadth of the markets.
Sugar had a great day at the office as prices recovered a great deal basically on reports coming from the neighbours. Pakistan is likely to import 40,000 tonne white sugar from countries including India in the near-term. This quantity is in excess of the 50,000 tonne sugar import tender by the Trading Corporation of Pakistan (TCP), which would be awarded by this weekend.
Earlier, last month Pakistan awarded its first 50,000 tonne sugar import tender of this year to Indian Sugar Exim Corporation (ISEC). The Pakistan Government has pegged domestic sugar shortage at 8 lakh tonne in this year. However, trade associations estimated the shortfall at around 1 million tonne in this year. The Pakistan Sugar Mills Association has estimated sugar production at 2.33 million tonne as against 2.49 million tonne in the previous year.
Rubber prices showed a minor recovery in futures market on strong buying interest, whereas the domestic market remained steady at Rs 81 per kg. Tightness in physical supply and demand for nearby shipment pushed were the major factors behind the prices going up. The global prices had a mixed bag with the fortunes fluctuating one way and the other, but the out look for prices remain firm.
Courtesy: Geojit Commodities Ltd