Sugar extend losses on sluggish spot demand

Amid weak demand and comfortable stocks in the spot market, sugar continued its slide to trade one per cent lower at Rs 2,880 per quintal in futures trade today.

At the Multi Commodity Exchange (MCX), sugar for delivery in current-month January fell by Rs 29, or one per cent to Rs 2,880 per quintal, with a turnover of one lot.

In a similar fashion, sugar for delivery in February also fell by Rs 15, or 0.50 per cent, to Rs 2,984 per quintal, with a turnover of one lot.

Market analysts said continued fall in sugar futures is driven by subdued demand from bulk consumers and surplus stocks at spot markets, and pick up in cane crushing at key producing states.

Besides, increased quota for January released by the government also kept pressure on the sugar futures prices here, they said.