Sugar market seems to have become rather more predictable now... prices were expected to rise in November and they rose.. December will be the month of dullness and so far it has been very boring..everyday prices coming down.
What I wrote in my last blog about price rise actually got pre-poned and prices jumped up sharply in November month.. now I see prices to re
main slugging in most part of December but I also sense an underline relief rally which should give some support to prices during last week of December and 1st week of Jan '12. Reason is simple .. Festive demands and liquidation of pipeline stock withing December.
main slugging in most part of December but I also sense an underline relief rally which should give some support to prices during last week of December and 1st week of Jan '12. Reason is simple .. Festive demands and liquidation of pipeline stock withing December.
A lot may depend on Sugar release for Jan '12. International market will have very limited impact on Indian sugar prices.
I think prices will stabilize around 10-12th Dec and may see little trading during mid-month but I see prices moving up by approx Rs. 2/- between 26 Dec-7 Jan '12 (Orange Line). Post that prices will steadily come down down and may be April '12 may see some revival of prices.
These views are entirely personal and based on my own analysis and forecast.
