Sugar futures extend gain, up 0.45% on rising demand

Rising for the second day, sugar prices were up by another 0.45 per cent to Rs 3,554 per quintal in futures trade today as traders indulged in widening positions amid strong demand from bulk consumers in the spot market.
Besides, estimates of fall in sugar output fuelled the uptrend.
Meanwhile, India's sugar production estimate has been revised downward by about one million tonnes (MT) to over 25 MT, in the current marketing year ending September on lower sugarcane availability.
At the National Commodity and Derivatives Exchange, sugar for delivery in far-month July advanced by Rs 16, or 0.45 per cent to Rs 3,554 per quintal with an open interest of 40,600 lots.

Likewise, the sweetener for delivery in May contract went up by Rs 13, or 0.39 per cent to Rs 3,360 per quintal in 45,870 lots.
Analysts said enlarging of positions by participants following pick up in demand from bulk consumers as well as retailers in the spot market kept sugar prices higher at futures trade.