Indian sugar rises on tight supply, high demand

REUTERS - Indian sugar futures rose on Monday to their highest level this year, driven by tight supply and high demand.

The March sugar contract rose as much as 1.2 percent to 3,946 Indian rupees ($58.72) on the National Commodity & Derivatives Exchange Ltd (NCDEX). The contract had risen nearly 200 rupees in the last 30 days, up to Friday's close.

The March sugar futures was up 0.3 percent to 3,190 rupees in heavy trading as of 1210 GMT.

Rise in sugar prices on the futures and spot markets triggered a rally in sugar stocks.

Dhampur Sugar Mills Ltd rose as much as 10.7 percent to 214.80 rupees, its highest in over 10-1/2 years, while Shree Renuka Sugars Ltd closed 12.9 percent higher at 17.10 rupees.

WHEAT

February wheat futures, which have fallen about 5 percent in the last 30 days, settled 2.6 percent lower at 1,782 rupees on Monday.

The fall was reflected by weak demand for wheat in a spot market in the north-western state of Rajasthan, a trader said.

Winter wheat planting in India this year was up about 7 percent at 31.78 million hectares as of Friday, government data showed.

RAPESEED, SOYOIL

The April rapeseed contract closed 0.4 percent lower at 3,826 rupees, while the most-actively traded March soyoil contract was largely flat at 689.05 rupees per 10 kg.

SOYBEAN, CORN

The March soybean futures contract fell 10 rupees to 3,033 rupees per 100 kg, while the February corn futures rose 0.5 percent to 1,461 rupees.

($1 = 67.1950 rupees)

(Reporting by Sudarshan Varadhan; Editing by Amrutha Gayathri)