Sugar futures down on profit-booking, higher quota

NEW DELHI: Sugar, which surged to two-week high in yesterday's trade, declined by Rs 6 to Rs 3,385 per quintal in futures trade today on profit-booking by speculators.

At the National Commodity and Derivatives Exchange, sugar for delivery in November traded lower by Rs 6, or 0.18 per cent, to Rs 3,385 per quintal, with an open interest of 40,630 lots.

The sweetener for delivery in December also shed Rs 4, or 0.12 per cent, to Rs 3,316 per quintal, with a turnover of 19,220 lots.

At the Kolhapur spot market in Maharashtra, sugar fell by Rs 5 to Rs 3,545 per 100 kg in yesterday's trade.

Marketmen said fall in sugar futures prices was due to profit-booking by speculators as prices soared to two-week high in yesterday's trade on festive season demand.

Besides, the government's statement that it is keeping a close watch on sugar sales by millers in the open market and warned against failure to sell the entire quota allocated to them for the October-November period also put pressure on the prices, they said.