Sugar prices rose by 2.34% to Rs 3,495 per quintal in futures trade today after speculators built-up positions supported by the rising demand from stockists and bulk consumers in view of the festive season.
At the National Commodity and Derivatives Exchange, sugar for delivery in September traded Rs 80, or 2.34%, higher at Rs 3,495 per quintal, with an open interest for 37,130 lots.
The August contract traded Rs 77, or 2.28%, higher at Rs 3,460 per quintal, with an open interest of 20,360 lots.
Analysts attributed the rise in sugar futures to positions created by participants, driven by a firming trend in spot market over demand from stockists and bulk consumers.
Deficient monsoon in almost all key sugar producing regions, which will hurt output next year, also affected the sentiment, they said.
Meanwhile, small sugar (S-30) prices at Mumbai's Vashi wholesale market rose by Rs 30/20 to Rs 3,482/3,572 per quintal in yesterday's trade.