Sugar futures up 0.48% on spot demand, poor rain
Sugar prices shot up by 0.48% to Rs 3,351 per quintal in futures trade today on the back of strong demand from bulk consumers in spot market amid poor rains in key growing areas.
At the National Commodity and Derivatives Exchange, the September contract for sugar traded Rs 16, or 0.48%, higher at Rs 3,351 per quintal, with an open interest for 19,750 lots.
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The August contract also traded Rs 15, or 0.46%, higher at Rs 3,282 per quintal, with an open interest of 34,090 lots.
Meanwhile, small sugar (S-30) climbed by Rs 88/74 per quintal to Rs 3,270/3,350 per quintal at the Mumbai's Vashi wholesale market in yesterday's trade.
Analysts attributed the persistent rise in sugar futures to speculative positions created by participants, driven by a firming trend in spot markets as demand from bulk consumers goes up during summer.
Deficient monsoon in almost all key sugar producing regions, which could hurt output next year, also affected the sentiment.