Sugar down 0.55% on ample supply, higher output

Country's sugar output is up 14.27% to 27.37 mn tonnes till April of the 2014-15 marketing year

Sugar prices moved down by 0.55 per cent to Rs 2,528 per quintal in futures trade today as speculators trimmed positions, largely dragged down by persistent supplies from mills amid reports of higher output.

At the National Commodity and Derivatives Exchange, sugar for delivery in July declined by Rs 14, or 0.55 per cent to Rs 2,528 per quintal with an open interest of 29,020 lots.

The May contract shed Rs 7, or 0.29 per cent to Rs 2,416 per quintal in 32,510 lots.

Analysts said offloading of positions by speculators, triggered by higher supplies in the physical markets from mills amid reports of higher output, mainly weighed on on sugar prices at futures trade.

The country's sugar production has increased by 14.27 per cent to 27.37 million tonnes till April of the 2014-15 marketing year, according industry body ISMA.