Sugar futures prices edged up by 0.25% to Rs 2,846 per quintal today, as speculators created positions largely on hopes the government will allow more exports of the sweetener but weak demand in the physical market capped the gains.
At the National Commodity and Derivatives Exchange, sugar for delivery in February moved up by Rs 7, or 0.25%, to Rs 2,846 per quintal, with an open interest of 23,060 lots.
In a similar fashion, sugar for delivery in March gained Rs 6, or 0.21%, to Rs 2,867 per quintal, with an open interest of 15,800 lots.
Marketmen said the rise in sugar futures prices was driven by speculations that the government may soon allow more exports but subdued demand and adequate stocks in the market following increased supplies by millers restricted the gains.