Sugar softens by 0.4% on ample supply, low demand

Sugar prices fell by another 0.37% to Rs 2,178 per quintal in futures trading today amid mounting stocks at the spot markets on higher supplies from mills and slackened demand from bulk consumers.

Also, reports of higher output estimates this marketing year kept pressure on sugar prices.

At National Commodity and Derivatives Exchange, sugar for delivery in October declined by Rs 8, or 0.37% to Rs 2,178 per quintal with an open interest of 35,610 lots.

Similarly, the sweetener for delivery in July contracts shed Rs 5, or 0.23% to Rs 2,127 per quintal in 37,760 lots.

Analysts said trimming of positions by speculators, triggered by adequate stocks in the physical market on higher supplies from mills, pulled down the sugar prices in futures trade.

Low demand from bulk consumers also influenced sugar prices at futures trading here.

At the wholesale market in the national capital, sugar ready prices dipped to seven-year low by falling Rs 100 to Rs 2,400-2,550 per quintal in yesterday's trade.