Sugar futures drop 2.52% on profit-booking

Sugar prices plunged by 2.52 per cent to Rs 3,720 per quintal in futures trade today as traders booked profits at prevailing levels 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 96, or 2.52 per cent to Rs 3,720 per quintal with an open interest of 3,210 lots.
Similarly, the sweetener for delivery in December contracts traded lower by Rs 19, or 0.53 per cent to Rs 3,534 per quintal in 9,140 lots.
Analysts said, besides profit-booking by participants at existing levels, absence of demand in the spot market due to crash crunch following the government banning Rs 500 and Rs 1,000 currency notes, mainly pulled down sugar prices at futures trade.