Sugar futures fell marginally by 0.12% to Rs 3,417 per quintal today as speculators booked profits after the market regulator, FMC, warned traders not to manipulate the prices of agricultural commodities.
However, a firming trend in the physical markets owing to strong demand amid the festive season and poor monsoon capped the losses.
At the National Commodity and Derivatives Exchange, sugar for delivery in October fell by Rs 4, or 0.12%, to Rs 3,417 per quintal, with an open interest of 13,080 lots.
The September contract traded Rs 3, or 0.09%, lower at Rs 3,372 per quintal, with an open interest of 34,350 lots.
Marketmen said besides the emergence of profit-booking by speculators at prevailing levels, commodity market regulator FMC's warning that it would not allow traders to manipulate futures price of agricultural items and could ban their trading if required put pressure on sugar prices.
Meanwhile, at Mumbai's Vashi wholesale market, prices of small sugar (S-30) surged by Rs 51-80 per quintal to Rs 3,491-3,542 in yesterday's trade. Medium sugar (M-30) also rose by Rs 56-60 per quintal to Rs 3,532-3,631.