Continuing on their winning streak for the third straight day, sugar prices moved up by 0.26% in futures trade today as speculators engaged in building huge positions on expectations that the government may allow further exports.
However, weak demand from bulk consumers in the spot markets limited the gains.
At the National Commodity and Derivatives Exchange, sugar for delivery in December was trading higher by Rs 8, or 0.26%, at Rs 3,050 per quintal, with an open interest for 43,740 lots.
Sugar for delivery in January was also up by Rs 5, or 0.17%, at Rs 2,998 per quintal, with an open interest for 16,960 lots.
"Speculative activity by participants on hopes that the government may permit further exports mainly influenced prices of the sweetener in futures trade," said an analyst.
Market analysts said the persistent rise in sugar prices in futures trade was mostly backed by speculation the government may further allow exports. However, a weak trend in the spot market due to subdued demand at prevailing levels restricted the gains.
Earlier this month, an Empowered Group of Ministers (EGoM) on Food had approved the export of one million tonne of sugar under the Open General Licence (OGL) scheme.
Meanwhile, medium sugar prices declined by Rs 10 to Rs 3,232-3,392 per quintal in the Vashi wholesale market yesterday due to reduced offtake by stockists and retail consumers.
