Sugar futures costlier by over 1% on spot demand

Poor rains in key growing areas also took prices higher

Sugar prices shot up by 1.12% to Rs 3,064 per quintal in futures trade today on rising demand from bulk consumers in spot market amid poor rains in key growing areas.

At the National Commodity and Derivatives Exchange, sugar for July delivery traded Rs 34, or 1.12%, higher at Rs 3,064 per quintal, with an open interest for 3,430 lots.

Sugar for delivery in August also traded Rs 7, or 0.22%, higher at Rs 3,122 per quintal, with an open interest of 25,390 lots.

Meanwhile, small sugar (S-30) rose by Rs 30/74 per quintal to Rs 3,102/3,235 per quintal at the Mumbai's Vashi wholesale market in yesterday's trade.

Analysts attributed the persistent rise in sugar futures to huge positions created by speculators, driven by a firming trend in spot markets as demand from bulk consumers goes up during summer. Deficient monsoon in key growing areas, which could hurt output next year, also affected the sentiment.