Sugar up 0.32% as spot demand picks up

Summer demand in spot market pulls sugar prices higher

Sugar prices rose in the futures trade today by 0.32% to Rs 2,780 per quintal today, as speculators enlarged their positions supported by a pick-up in spot demand.

However, ample supplies in the market capped gains.

At the National Commodity and Derivatives Exchange, sugar for April delivery traded Rs 9, or 0.32%, higher at Rs 2,780 per quintal, with an open interest for 16,420 lots.

May contract also showed strength today and gained Rs 8, or 0.28%, to Rs 2,833 per quintal, with an open interest of 37,770 lots.

Analysts attributed the rise in sugar futures to speculators enlarging positions, driven by a pick-up in summer season demand from bulk consumers in the spot market.