Sugar futures up on seasonal demand

Continuing its rising streak, sugar prices rose by 0.07% to Rs 2,861 per quintal in futures trade today largely on the back of rising demand in the spot markets from bulk consumers, but higher supplies restricted gains.

At the National Commodity and Derivatives Exchange, sugar for delivery in July traded Rs 2, or 0.07% higher at Rs 2,861 per quintal, with an open interest of 2,210 lots.

Similarly, sugar futures prices for delivery in May rose by Re 1, or 0.04% to Rs 2,731 per quintal, with a business turnover of 36,580 lots.

Traders said India's sugar futures ended steady on Wednesday as higher supplies outweighed summer season demand.

Also, the government's decision to allow exports of 500,000 tonnes of white sugar supported the uptrend in the prices, they added.

Demand for the sweetener from ice-cream and cold-drink makers typically goes up during the summer months.