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Sugar prices decline on higher output

Muted demand in the spot market also pulled prices lower

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 3:44 AM IST

Amid ample stocks and subdued demand in spot markets, sugar futures fell by Rs 13 to Rs 2,825 per quintal today as speculators indulged in reducing their positions.

At the National Commodity and Derivatives Exchange, sugar for delivery in June fell by Rs 13, or 0.46%, to Rs 2,825 per quintal, with an open interest of 25,910 lots.

The July contract shed Rs 7, or 0.25%, to Rs 2,836 per quintal, with an open interest of 15,120 lots.

Analysts said fall in sugar futures prices was mostly owing to reducing of positions by speculators on ample stocks following industry's upward revision in the output to 25.8 million tonnes against its earlier estimate of 24.5 million tonnes.

Besides, fall in demand at spot markets also put pressure on sugar futures here, they said.

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First Published: May 28 2012 | 1:47 PM IST

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