Sugar
Since sugar spot prices touched six-year lows in August, prices have rallied 32 per cent to 52-week highs. Edelweiss Research shows the prices have rallied prematurely, just ahead of the fresh supply infusion and might not sustain. Pakistan's emergence as a competing exporter will cap sharp price gains. The price of NCDEX Sugar M Kolhapur trading at Rs 2,836 a quintal currently will come down about Rs 2,750 a quintal in a week to 10 days.
Cardamom
Expected slowdown in arrivals and resumption of buying at lower levels is likely to keep prices at Rs 770 a kg, from the current level of Rs 750 a kg. Daily average arrivals across the auction centres in Kerala are hovering around 75 tonnes a day, against 80 tonnes a day seen during last week. Arrivals are expected to decline further, which would support prices, however, weak international prices would cap sharp price gains.
Prerana Desai,
Vice-president, research, agri value chain, Edelweiss Integrated Commodity Management
