Sugar futures down on low demand, higher supply

Sugar futures prices dipped by Rs 11 to Rs 2,765 per quintal as speculators reduced their positions following a weak trend at the spot market, due to sluggish demand and higher supplies.

At the National Commodity and Derivatives Exchange counter (NCDEX), sugar for delivery in March fell by Rs 11, or 0.40 per cent, to Rs 2,765 per quintal, with an open interest of 31,450 lots.

The sugar for delivery in February also shed Rs 10, or 0.37 per cent, to Rs 2,669 per quintal, with a business turnover of 25,980 lots.  

Market analysts said weak trend in the physical market due to subdued demand from bulk consumers and adequate stocks, followed by higher supplies, put pressure on the sugar futures prices here.