Noble/Olam could benefit as India lifts its ban on sugar futures trading. The restriction was imposed in May 09 after global & domestic prices surged because of a shortage. Market watchers are bullish on the sugar futures & expects volumes on sugar contracts to pick up with India’s prodn forecast to reach 25.5m MT this season starting Oct 1, the highest in 3 years.
Raw sugar futures have jumped 88% since reaching a 13-month low on May 7 on concerns that bad weather will hurt crops in Brazil, Russia, China and Pakistan. Separately, Citigroup raised its short-tem sugar price forecast citing unfavorable weather that has weakened prodn growth outlook.
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