Sugar up in futures trade on hopes of firm demand

(The Economic Times) – NEW DELHI: Sugar prices rose by 0.17 per cent to Rs 3,576 per quintal in futures trade today, extending yesterday’s gain, as speculators engaged in creating positions on hopes demand pick-up in coming festival season.
At the National Commodity and Derivatives Exchange, sugar for October delivery traded Rs 6, or 0.17 per cent, higher at Rs 3,576 per quintal, with an open interest for 27,720 lots.
Sugar for delivery in September also traded Re 1, or 0.03 per cent, higher at Rs 3,505 per quintal, with an open interest of 24,070 lots.
Marketmen said the rise in sugar futures was on account of huge positions created by speculators in anticipations that upcoming festivals will boost demand for the sweetener and concerns over output due to deficient rains in key cane growing states.
However, additional quota of non-levy sugar for the September quarter, limited the rise in spot prices.