Sugar futures up on hopes of more export

Sugar futures traded 0.32% higher at Rs 2,863 per quintal today on the National Commodity and Derivatives Exchange (NCDEX), as speculators enlarged positions on hopes that the government may allow additional exports of the sweetener.

However, weak spot demand and rising supplies in the markets, capped the gains.

At the NCDEX, sugar for delivery in February rose by Rs 9, or 0.32%, to Rs 2,863 per quintal, with an open interest of 21,750 lots.

Similarly, the delivery for January also edged higher by Rs 3, or 0.11%, to Rs 2,831 per quintal, with an open interest of 16,280 lots.

Meanwhile, in the Kolhapur spot market in the top producing Maharashtra state, sugar fell by 0.25% to Rs 2,810 per 100 kg in yesterday's trade.

Analysts said expectations that the government may allow more exports of the sweetener mainly influenced sugar prices at futures trade but a weak demand in spot markets against supply pressure restricted the gains.