max i reckon we are there

Sugar - buy
Cotton - buy

What you reckon?

Indian sugar futures up on ISO deficit forecast
Thu May 8, 2008 4:35pm IST

MUMBAI, May 8 (Reuters) - Indian sugar futures rose on Thursday as traders covered short positions hoping prices will rise after the International Sugar Organisation (ISO) forecast a sugar deficit in 2008/09.

At 4:08 p.m. (1038 GMT), the May contract NSMK8 had edged up 0.07 percent to 1,396 rupees ($33.5) per 100 kg on the National Commodity and Derivatives Exchange, while the June contract NSMM8 had risen 0.34 percent to 1,461 rupees.

"Very soon prices in sugar will bottom out. Buy on dips is suggested," Ashish Shah, an analyst at Sushil Global Commodities Pvt Ltd, said.

According to an ISO forecast late on Wednesday, there will be a deficit in global sugar supply in 2008/09, after a surplus in 2007/08. See [ID:nN07489389]

However, the government's decision to suspend futures trading in four commodities -- soyoil, rubber, potato and chickpea -- weakened sentiment for sugar. See [ID:nBOM242471

Some government allies have called for an end to futures trading, which they say has contributed to a spike in annual wholesale price inflation to three-year highs. An expert panel has reported that there is no clear link between the two.

Spot sugar prices in the western state of Maharashtra, the largest producer, rose 0.39 percent to 1,424.65 rupees per 100 kg. ($1=41.7 rupees) (Reporting by Abhishek Shanker, Editing by Mark Williams)