Sugar up 0.5% on lower output estimates

Commodity for delivery in March traded higher by 0.9%

Supported by lower output estimates and rising spot demand ahead of summer season, sugar prices rose by Rs 17 to trade at fresh seven-month high of 3,071 per quintal today in futures trade.

At the National Commodity and Derivatives Exchange, sugar for delivery in April traded Rs 17, or 0.51%, to trade at Rs 3,071 per quintal, the higherst level since Auust last year, with an open interest of 39,080 lots.

On the similar lines, the sweetner for delivery in March traded higher by Rs 29, or 0.99% to Rs 3,019 per quintal in 8,510 lots.

Analysts attributed the persistent rise in prices at futures trade to speculative positions built-up by speculators after country's sugar production for the marketing year 2013-14 has been revised downwards by 1.2 million tonnes to 23.8 million tonnes due to lower output estimates in Uttar Pradesh.

Besides, rising demand from bulk consumers ahead of summer seasson in the spot markets supported the upside in sugar prices at futures trade.

In the spot markets, at Mumbai's Vashi wholesale market, Small sugar (S-30) traded higher at Rs 2,882/2,932 per quintal in yesterday's trade.