Sugar futures gain today

Extending its upward trend, sugar futures today gained on the National Commodity and Derivatives Exchange (NCDEX) on speculative buying by traders, driven by reports of lower output this year at the country's main producing region.      

Pick-up in demand on the physical markets also supported the rise in sugar prices at futures market. On the NCDEX counter, the most-active February contract traded Rs 20, or 1.30% higher, at Rs 1,919 per quintal, trading 1,440 tonne.

Sugar for far-month January contract also traded Rs 1.1 per cent higher at Rs 1,876 per quintal in a turnover of 5,100 tonnes, while December contract gained Rs 18, or one%, to Rs 1,764 per quintal, clocking turnover of 3,930 tonnes.      

In spot trading at Kolhapur (Maharashtra), sugar also traded marginally higher at Rs 1,792 per quintal.     

Market experts said reports that sugar output in Maharashtra -- country's largest producer of sugar -- is expected to drop by nearly 10% this year from 1.1 mn tonne a year ago and increased demand at spot markets mainly influenced futures prices here.     

They said, however, gains were limited following pick-up in cane crushing in producing states.