Sugar prices rose by 0.56% to Rs 3,513 per quintal in futures trade today, extending its rising streak for yet another session, as speculators engaged in creating positions, driven by output concerns due to poor rainfall in key growing regions.
Pick up in spot demand from bulk consumers ahead of festivities supported the upside in sugar prices.
"Demand for the sweetener is strong. Even releasing of over 4 lakh tonne of additional non-levy sugar for September quarter failed to check the rising trend in the sugar," said a leading wholesale sugar trade.
At the National Commodity and Derivatives Exchange, sugar for October delivery traded Rs 20, or 0.56%, higher at Rs 3,610 per quintal, with an open interest for 36,610 lots.
September sugar traded Rs 12, or 0.34%, higher at Rs 3,513 per quintal, with an open interest of 20,600 lots.
Marketmen said persistent rise in sugar futures was due to positions created by speculators on estimated decline in the output due to deficient rains in key producing states.
Maharashtra, country's largest sugar producing state, has had very low rainfall so far.