Sugar up on spot demand, hopes of more export

Seasonal demand, more exports pushes speculators to enlarge their positions

Sugar futures prices rose by 0.24% to Rs 2,927 per quintal today, as speculators enlarged their positions on the back of seasonal demand from bulk consumers at spot markets amid expectations that the government may allow more exports of the sweetener.

At the National Commodity and Derivatives Exchange, sugar for June delivery traded Rs 7, or 0.24%, higher at Rs 2,927 per quintal, with an open interest for 28,410 lots.

Sugar for delivery in May also showed strength and gained Rs 2, or 0.07%, to Rs 2,889 per quintal, with an open interest of 50,480 lots.

Analysts attributed the rise in sugar futures to speculators building-up positions in line with a firming trend at spot markets on rising demand from bulk consumers amid expectations that the government may allow more exports of the sweetener in the 2011-2012 marketing year (October-September).