Sugar down 0.95% on higher supply

Govt's decision to release 40 lakh tonne sugar to meet festive demand contributes to downtrend

Sugar futures today fell sharply by Rs 32 to Rs 3,491 per quintal as speculators trimmed positions amid higher supplies in the spot markets after the government decided to release higher quantity of sweetener in October and November.

At the National Commodity and Derivatives Exchange, sugar for delivery in far-month December traded lower by Rs 32, or 0.95%, to Rs 3,350 per quintal, with an open interest of 18,570 lots.

The sweetener for delivery in October shed Rs 6, or 0.17%, to Rs 3,491 per quintal in an open interest of 22,440 lots.

November sugar shed Rs 3, or 0.09%, to Rs 3,427 per quintal, with an open interest of 23,840 lots.

 

Marketmen said fall in sugar futures prices was due to adequate stocks in the spot markets following government's decision to release higher quantity of sugar at 40 lakh tonne in the open market in October and November to meet festive season demand.