Sugar rises 0.23% on spot demand

Traders build positions on higher offtake during festival season, but ample supplies cap gains

Sugar prices moved up by 0.23 per cent to Rs 3,048 per quintal in futures trade today as speculators created fresh positions, tracking a better trend at spot market following rise in demand in view of the festive season.

However, ample supplies from mills in the physical market restricted the gains.

At the National Commodity and Derivatives Exchange, sugar for delivery in October rose by Rs 7, or 0.23 per cent to Rs 3,048 per quintal with an open interest of 3,590 lots.

The September contract traded higher by Rs 6, or 0.20 per cent to Rs 3,009 per quintal in 10,020 lots.
 

Analysts said the rise in sugar prices was mostly on account of pick-up in demand in the spot market in view of festive season but ample supplies from mills limited the gain.