Sugar remains up on festive demand

NEW DELHI: Sugar futures rose by 0.56 per cent to fresh three-week high of Rs 3,570 per quintal, driven by rising demand in spot markets for the festive season.

However, adequate supplies in the market limited the gains.

At the National Commodity and Derivatives Exchange, sugar for November delivery traded Rs 20, or 0.56 per cent, higher at Rs 3,570 per quintal, with an open interest for 16,230 lots.

Sugar for delivery in October also traded higher by Rs 18, or 0.51 per cent, at Rs 3,568 per quintal, with open interest of 41,510 lots.

Traders attributed the persistent rise in sugar futures to huge positions created by speculators amid a firm demand ahead of the festive season.

However, adequate supply in spot market restricted the gains, they added.

At Kolhapur spot market in top-producing Maharashtra, sugar rose by Rs 3 to 3,583 per 100 kg in yesterday's trade.