Sugar futures remain high on strong seasonal demand

Amid strong seasonal demand from bulk consumers at the spot market, sugar prices gained 0.45 per cent to Rs 3,360 per quintal in futures trade today as participants raised bets.
At the National Commodity and Derivatives Exchange, sugar for delivery in May advanced by Rs 15, or 0.45 per cent to Rs 3,360 per quintal with an open interest of 2,330 lots.
On similar lines, the sweetener for delivery in far-month July moved up by Rs 11, or 0.31 per cent to Rs 3,551 per quintal in 51,530 lots.
Analysts said widening of positions by traders, driven by strong seasonal demand from bulk consumers in the spot market, kept sugar prices higher at the futures trade.

Expectations of lower output also supported the upside, they said.
Meanwhile,sugar production for this crop year is pegged at 25.1 million tonnes, mainly due to estimated decline in production in Uttar Pradesh and Karnataka, according to a report.