Sugar up 1% on spot demand, poor rainfall

Higher offtake from bulk consumers also drives futures prices

Sugar prices rose by 0.90% to Rs 2,918 per quintal in futures trade today as speculators created huge positions, buoyed by a firm spot markets trend.

At the National Commodity and Derivatives Exchange, sugar for July delivery traded Rs 26, or 0.90%, higher at Rs 2,918 per quintal, with an open interest for 12,760 lots.

August sugar traded Rs 18, or 0.61%, higher at Rs 2,970 per quintal, with an open interest of 20,890 lots.

Meanwhile, sugar spot prices shot up by Rs 100 to Rs 3,260-3,460 per quintal in the national capital.

Analysts attributed the rise in sugar futures to fresh positions created by speculators, driven by a firming trend in spot markets on the back of rising demand from bulk consumers and deficient monsoon in key growing areas.