Commodity outlook: Sugar prices on an uptrend; likely to hit $16.8

India is likely to produce less sugar than forecast earlier, with mills reporting a sharp drop in sugar cane yields because of drought and infestations.

Malaysian palm oil futures, edged up on Monday, snapping weeks of declines, supported by mild gains in US soy oil. Falling exports and rising stocks have been a huge concern for the markets. Stockpiles at the end of October increased 7.6 per cent from the previous month to 2.72 million tonnes, while production rose 6 per cent to 1.96 million tonnes, official data from the Malaysian Palm Oil Board showed last week.

The benchmark third month February contract bounced higher from near-term support levels. We continue to hold a bearish view on edible oils with the underlying