Sugar up on festive demand

Sugar futures rose by Rs 12 to Rs 3,314 per quintal today after speculators enlarged positions amid expectations that festivals will raise the demand for the sweetener.

At the National Commodity and Derivatives Exchange, the December contract for sugar traded at Rs 12, or 0.36%, higher at Rs 3,314 per quintal, with an open interest of 19,300 lots.

The November contract gained Rs 4, or 0.12%, at Rs 3,378 per quintal, with an open interest of 41,490 lots.

Meanwhile, at Mumbai's Vashi wholesale market, medium sugar traded higher at Rs 3,550/3,701per quintal in yesterday's trade.

Marketmen attributed the rise in sugar futures to fresh positions created by speculators on hopes that retail demand is likely to improve in coming days, but higher non-levy quota for October and November capped the gains.