Muted demand drag down sugar futures by 2.35%

Sugar prices fell by 2.35 per cent to Rs 3,621 per quintal in futures trading today as traders trimmed their positions to book profits amid easing demand in the spot market against adequate stocks position.
At the National Commodity and Derivatives Exchange, sugar for delivery in far-month March 2017 dropped by Rs 87, or 2.35 per cent, to Rs 3,621 per quintal with an open interest of 3,640 lots.
Similarly, the sweetener for delivery in December contracts declined by Rs 81, or 2.30 per cent, to Rs 3,435 per quintal in 8,610 lots.
Analysts said besides tepid demand in the spot market due to cash crunch following the government banning Rs 500 and Rs 1,000 currency notes against sufficient stocks position, mainly pulled down sugar prices at futures trade.