Sugar futures extend losses on ample supply, higher output

Sugar prices fell further by 0.75 per cent to Rs 2,387 per quintal in futures trade today as speculators indulged in reducing positions amid higher supplies from mills.
Furthermore, reports of higher output this marketing year put pressure on the prices.
At the National Commodity and Derivatives Exchange, sugar for delivery in July eased by Rs 18, or 0.75 per cent, to Rs 2,387 per quintal with an open interest of 50,610 lots.
Likewise, the sweetener for delivery in May shed Rs 4, or 0.18 per cent to Rs 2,275 per quintal in 13,270 lots.
Analysts said offloading of positions by speculators, triggered by persistent supplies in the physical market amidst reports of higher output, mainly weighed on sugar prices at futures trade.

Meanwhile, the country's sugar production rose by 16 per cent to 27.84 million tonnes (MT) till May 15 of the current marketing year that started in October last year.