Sugar futures up on spot demand

Firming trend in the spot market contributed to gains

Buoyed by a firming trend in the spot markets on rising demand from bulk consumers, sugar futures prices rose by 0.53% to Rs 2,835 per quintal today.

At the National Commodity and Derivatives Exchange, sugar for June delivery traded Rs 15, or 0.53%, higher at Rs 2,835 per quintal, with an open interest for 5,510 lots.

Sugar for delivery in July also showed strength and gained Rs 12, or 0.42%, to Rs 2,848 per quintal, with an open interest of 22,790 lots.

Analysts attributed the rise in sugar futures to fresh positions created by speculators, supported by a firming trend in spot markets on the back of pick up in demand from bulk consumers, such as soft drink makers.