Bearish tone dominated the Agri markets for yet another session. There was no bad news for the near term weather for the summer season crops, therefore sellers continued dominating the futures market on the midweek. Market participants meanwhile continued seeking clues regarding the upcoming USDA report, which will be released during late evening hours today. This would explain edible oil and edible oilseed futures trading cautiously today.
Sugar was the leading gainer in the Agri basket (after coriander) on the midweek. There was news in the market that the government of India will provide interest-free loans to sugar mills struggling to pay cane dues to farmers because of weak demand. The government has approved the decision for loans of 60 billion rupees ($939.3 million) at a press briefing.
The government of India was to discuss about MSP related issues on Kharif crops but as per reports the decision on revision of MSP for Kharif Crops has been postponed. COCUD and Kapas contracts maintained higher levels like previous day, as the recent price fall continued prompting buyers in maintaining their exposure in the futures market.