Sugar recovers on spot demand

Higher output, supply pressure in spot market restricted gains

In range-bound movements, sugar prices recovered marginally by 0.04% to Rs 2,787 per quintal in futures trade today as speculators enlarged their positions on pick-up in spot demand from bulk consumers.

However, higher output and supply pressure in the spot markets restricted gains.

At the National Commodity and Derivatives Exchange, sugar for June delivery traded Re 1, or 0.04%, higher at Rs 2,787 per quintal, with an open interest for 11,860 lots.

Sugar for delivery in July also rose by similar margin to Rs 2,824 per quintal, with an open interest of 22,470 lots.

Analysts attributed the rise in sugar futures to speculators building-up positions, driven by a pick-up in demand from bulk consumers, but supply pressure on higher output limited the gains.