Sugar up 0.94% on spot demand

Output concerns due to deficient rains in key cane growing states support uptrend

Sugar prices rose by 0.94% to Rs 3,640 per quintal in futures trade today, buoyed by the strong demand in the spot markets ahead of festival season amid output concerns due to poor rainfall in key growing regions.

At the National Commodity and Derivatives Exchange, sugar for October delivery traded Rs 34, or 0.94%, higher at Rs 3,640 per quintal, with an open interest for 40,410 lots.

September sugar traded Rs 13, or 0.37%, higher at Rs 3,521 per quintal, with open interest of 16,510 lots.

Meanwhile, at Mumbai's Vashi wholesale market, Medium sugar (M-30) strengthened by Rs 30/31 per quintal to Rs 3,621/3,781 in yesterday's trade.

Analysts attributed the rise in sugar futures to huge positions created by speculators, powered by the rising demand in the spot markets in view of the approaching festival season and concerns over output due to deficient rains in key cane growing states.

Maharashtra, country's largest sugar producing state, has had very low rainfall so far.