Sugar recovers on short-covering, rises 0.45%

Sugar staged a comeback to trade 0.45 per cent higher at Rs 2,950 per quintal in futures trade today, as speculators covered-up their short positions even as government put on hold export of the sweetener. 

On the Multi Commodity Exchange (MCX), sugar for delivery in January contract shed Rs 14, or 0.45 per cent, to Rs 2,950 per quintal, with a business turnover of eight lots.

Similarly, the delivery for February contract also showed some strength and traded Rs 10, or 0.34 per cent higher at Rs 2,987 per quintal, with a turnover of four lots.

Analysts said covering-up of pending positions by speculators, helped sugar prices to recover at futures market but government hold on exports of the sweetener in view of high food inflation, restricted gains.