Sugar prices shot up by 0.68% to Rs 2,960 per quintal in futures trade today, as speculators enlarged their positions on expectations that the government may decide on granting permission for its exports and strong demand at the spot markets.
In addition, the delay in cane-crushing in key producing states also supported the rise in sugar prices at futures trade.
At the National Commodity and Derivatives Exchange, December sugar moved up by Rs 20, or 0.68%, to Rs 2,960 per quintal, with an open interest of 31,830 lots.
In a similar fashion, the January contract gained Rs 17, or 0.58%, to Rs 2,967 per quintal, with an open interest of 9,790 lots, while delivery in far-month February up by Rs 1,or 0.38% to Rs 2,978 per quintal having an open interest of 1,060 lots.
Analysts said hopes that the government may decide on sugar exports at the meeting of the Empowered Group of Ministers (EGoM) likely to be held today and strong demand at the spot markets mainly influenced sugar prices at futures trade here.
Besides, reports of delay in cane-crushing in key producing states, too supported the upside in prices, they said.