Spot demand lifts sugar futures by 1.17%

Sugar prices were up 1.17 per cent to Rs 2,846 per quintal in futures trading today as speculators enlarged positions, driven by pick up in demand in the spot market amid expectations of fall in output.
At the National Commodity and Derivatives Exchange, sugar for delivery in March next year rose by Rs 33, or 1.17 per cent to Rs 2,846 per quintal with an open interest of 46,420 lots.
Similarly, the sweetener for delivery in December contracts gained Rs 31, or 1.15 per cent to Rs 2,722 per quintal in 54,050 lots.
Analysts attributed the rise in sugar prices in futures trade to improved demand from retailers as well as bulk consumers at the spot market.

Meanwhile, India's sugar output is estimated to decline by 4.62 per cent to 26.8 million tonnes in the 2015-16 marketing year, says an ICRA report.
The estimate is, however, higher than the government's projection of 26 million tonnes of sugar output this year but slightly lower than industry body ISMA's estimate of 27 million tonnes for the same period.
The country had produced 28.1 million tonnes of sugar in the 2014-15 marketing year (October-September).