Adequate stocks drag down sugar down by 0.5%

Commodity for delivery in far-month March next year contracts shed 0.28%

Sugar prices eased by 0.51% to Rs 2,734 per quintal in futures trade today as participants reduced exposure, triggered by adequate stocks at the spot market on higher supplies from mills.

However, festive and wedding season demand capped the fall.

At the National Commodity and Derivatives Exchange, sugar for delivery in December month declined by Rs 14, or 0.51%, to Rs 2,734 per quintal with an open interest of 55,750 lots.

Likewise, the sweetner for delivery in far-month March next year contracts shed Rs 8, or 0.28%, to Rs 2,858 per quintal in 34,910 lots.

Analysts said offloading of positions by traders triggered by adequate stocks position in the physical market on higher supplies from mills, mainly kept pressure on sugar prices at futures trade.