Sugar gains 0.55% on spot demand

Sugar prices gained 0.55% to Rs 3,318 per quintal in futures trade today as speculators enlarged their positions on hopes of a rise in demand in the spot market ahead of the festive and marriage season.

Higher supplies in the physical market capped the gains.

At the National Commodity and Derivatives Exchange, sugar for delivery in December rose by Rs 18, or 0.55%, to Rs 3,318 per quintal, with an open interest of 15,340 lots.

November sugar gained Rs 16, or 0.48%, to Rs 3338 per quintal in 32,980 lots.

Market analysts said speculators enlarged their positions on expectations of a rise in demand during the upcoming festive and wedding season, pushing up sugar prices at futures trade.