Sugar up on spot demand

Continuing its rising streak, sugar prices rose by Rs 4 to Rs 2,880 per quintal in futures trading today as speculators engaged in creating positions, supported by pick-up in spot markets demand from bulk consumers amid concerns over the delayed monsoon.

At the National Commodity and Derivatives Exchange, sugar for delivery in July edged higher by another Rs 4, or 0.14%, to Rs 2,880 per quintal, with an open interest of 23,280 lots.

The sugar for delivery in August traded Re one, or 0.03%, higher at Rs 2,901 per quintal, in an open interest of 11,000 lots.

Marketmen said persistent rise in sugar futures was mostly due to a firming spot market trend as demand from bulk consumers improved.

Besides, concerns over the delayed monsoon, which could impact production in the next season, also influenced the sweetener's price at futures trade, they said.

Meanwhile, sugar prices in the Kolhapur spot market in top producing state of Maharashtra rose by Rs 12 to Rs 2,841 per 100 kg in yesterday's trade.