Sugar futures succumbs to profit-booking, higher supply

NEW DELHI: Amid profit-booking at higher levels by speculators and higher supplies, sugar futures prices today fell by Rs 8 to Rs 3,308 per quintal.

However, strong festive season demand capped the losses. At the National Commodity and Derivatives Exchange, sugar for delivery in December traded lower by Rs 8, or 0.24 per cent, to Rs 3,308 per quintal, with an open interest of 16,230 lots.

The sweetener for delivery in November shed Rs 7, or 0.21 per cent, to Rs 3,344 per quintal, in a turnover of 32,640 lots.

At Mumbai's Vashi wholesale market, medium sugar (M-30) traded Rs 10 higher at Rs 3,582/3,711 per quintal yesterday on festive season demand.

Marketmen said fall in sugar futures prices was mostly due to profit-booking by speculators and increased supplies in spot market.

The government has allowed millers to sell 4 million tonnes of non-levy sugar in October and November, higher than the average monthly allocation of around 1.7 million tonnes.

Non-levy, or free-sale, sugar is sold by millers in the open market, but the quantity each mill can sell is fixed by the government.