Sugar declines by 0.21% on higher supply

Speculators pare positions as reports of higher output in this marketing year add pressure on prices

Sugar prices fell by 0.21 per cent to Rs 2,431 per quintal in futures market today as speculators reduced positions amidst ample supplies from mills.

Further, reports of higher output in this marketing year put pressure on sugar.

At the National Commodity and Derivatives Exchange, sugar for delivery in July declined by Rs 5, or 0.21 per cent, to Rs 2,431 per quintal with an open interest of 9,870 lots.

The May contract edged lower by Rs 2, or 0.08 per cent, to Rs 2,375 per quintal in 39,340 lots.

Analysts said offloading of positions by participants, driven by adequate stocks position in spot markets on higher supplies from mills, mainly weighed on sugar prices at futures trade.