Sugar futures extend losses on sluggish demand

Sugar futures prices fell further by 0.22% today, extending yesterday's losses, as speculators were reluctant to enlarge positions amid low demand in the physical markets.

However, restricted supplies from millers, anticipating price rise following the government's decision to allow exports, limited the losses.

At the National Commodity and Derivatives Exchange, sugar for delivery in April traded Rs 6, or 0.22%, lower at Rs 2,771 per quintal, with an open interest of 37,910 lots.

It had ended 0.28% lower at Rs 2,777 per quintal in yesterday's trade.

Similarly, sugar for delivery in May shed Rs 4, or 0.14%, to Rs 2,853 per quintal, with a business volume of 13,760 lots.

Analysts said the demand, which usually remains weak in the spot markets due to month end, mainly kept the pressure on the sweetener prices at futures trade here.

However, limited supplies by millers on hopes of better prices, restricted losses, they added.

Meanwhile, in Kolhapur, a key market in top producing Maharashtra state, the most traded S-variety was remained steady at Rs 2,703 per quintal in yesterday's trade.