Sugar futures decline on subdued demand, supply pressure

 Sugar remained under pressure in futures trade today largely on rising supplies and its prices fell by by 0.34% to Rs 2,924 per quintal.

In addition, a weak trend in the spot market due to sluggish demand from bulk consumers at prevailing prices put pressure on sugar.

At the National Commodity and Derivatives Exchange, sugar for delivery in December fell by Rs 10, or 0.34%, to Rs 2,924 per quintal, with an open interest for 46,540 lots.

Likewise, sugar for delivery in January fell by Rs 7, or 0.24%, to Rs 2,886 per quintal, with an open interest of 24,120 lots.

 

Analysts attributed the fall in sugar futures prices to sluggish demand from bulk consumers and rising supplies in the market on expectations of bumper output.

Meanwhile, at Kolhapur market in the top producing Maharashtra state, the most traded sugar S-variety dropped by 0.94% to Rs 2,950 per quintal in yesterday's trade.