Sugar traded 1.1% higher; driven by fall in production

Sugar futures traded 1.11% higher at Rs 2,816 per quintal today today as participants indulged in creating speculative positions driven by fall in production amid rising spot demand.

At the National Commodity and Derivatives Exchange, sugar for delivery in March traded Rs 31, or 1.11% higher at Rs 2,816 per quintal with an open interest of 22,920 lots.

On the similar lines, the sweetner for delivery in April traded higher by Rs 30, or 1.05% to Rs 2,887 per quintal in 30,200 lots.

Analysts attributed the rise in prices at futures trade to speculative positions built-up by speculators after the country's sugar output fell 10.63% to 16.86 million tonnes in the October-February period of the ongoing 2013-14 marketing year.

Besides, a rising trend in the spot markets on the back of strong demand from bulk consumers also supported the upside in sugar prices at futures trade.

At Mumbai's Vashi wholesale market, Small sugar (S-30) traded higher at Rs 2,761/2,855 in yesterday's trade.