Sugar futures at 3-week high on spot demand, output concerns

(The Economic Times) – NEW DELHI:  Sugarfutures today rose by Rs 17, or 0.47 per cent, to fresh three-week high of Rs 3,625 per quintal driven by rising demand in spot markets and concerns over production due to poor rainfall in key growing regions.
At  the National Commodity and Derivatives Exchange, the October contract of sugar traded Rs 17, or 0.47 per cent, higher at fresh three-week high of Rs 3,625 per quintal, with an open interest for 35,210 lots.
Sugar for delivery in September also traded higher by Rs 15, or 0.43 per cent, at Rs 3,527 per quintal, with open interest of 21,580 lots.
Analysts attributed the persistent rise in sugar futures to huge positions created by speculators, triggered by rising demand amid concerns over output due to deficient rains in key cane growing states.
However, additional supply in  spot market restricted gains, they added.
Meanwhile, at Mumbai’s Vashi wholesale market, Medium sugar (M-30) gained Rs 15 per quintal to Rs 3,561/3,711in yesterday’s trade.