Ample stocks drag down sugar futures by 0.89%

Sugar prices declined 0.89 per cent to Rs 2,676 per quintal in futures trade today as participants reduced positions, triggered by ample stocks at the spot market on higher supplies from mills.
Reports of higher output also put pressure on sugar prices.
The country's sugar production rose by 33 per cent to 7.61 lakh tonnes till November 15 in the current marketing year on higher output from Maharashtra.
Sugar production in India, the world's second largest producer and biggest consumer, stood at 5.74 lakh tonnes in the same period of 2014-15 marketing year (October-September).
At the National Commodity and Derivatives Exchange, sugar for delivery in December month fell by Rs 24, or 0.89 per cent, to Rs 2,676 per quintal with an open interest of 52,140 lots.

Similarly, the sweetener for delivery in far-month March next year shed Rs 9, or 0.32 per cent, to Rs 2,822 per quintal in 59,740 lots.
Analysts said offloading of positions by participants triggered by sufficient stocks at spot market on higher supplies from mills, mainly pulled down sugar prices at futures trade.