Sugar up 0.17% on firm demand

Festive demand, deficient rains help rise

Sugar prices rose by 0.17% to Rs 3,576 per quintal in futures trade today, extending yesterday's gain, as speculators engaged in creating positions on hopes of a pick up in demand in the upcoming festival season.

At the National Commodity and Derivatives Exchange, sugar for October delivery traded Rs 6, or 0.17%, higher at Rs 3,576 per quintal, with an open interest for 27,720 lots.

September sugar traded Rs 1, or 0.03%, higher at Rs 3,505 per quintal, with an open interest of 24,070 lots.

Marketmen said the rise in sugar futures was on account of huge positions created by speculators in anticipation that upcoming festivals will boost demand for the sweetener.

 

Concerns over output due to deficient rains in key cane growing states helped the rise.

However, additional quota of non-levy sugar for the September quarter, limited the rise in spot prices.