Sugar futures extend weakness on ample stocks at spot market

Continuing its slide for a fourth straight day, sugar prices fell by another 0.45 per cent to Rs 3,723 per quintal in futures trading today as participants engaged in trimming position amid adequate stocks at the spot market following higher supplies from mills
At the National Commodity and Derivatives Exchange, sugar for delivery in far-month October fell by Rs 17, or 0.45 per cent to Rs 3,723 per quintal with an open interest of 13,220 lots.
Likewise, the sweetner for delivery in July month contracts eased by Rs 13, or 0.36 per cent to Rs 3,578 per quintal in 32,910 lots.

Analysts said persistent offloading of positions traders on the back of adequate stocks on increased supplies in the physical market, mainly kept pressure on sugar prices at futures trade.
Meanwhile, the government yesterday said there would be no shortage of sugar in the 2016-17 season starting October despite forecast of drop in production by up to 2 million tonnes.