Sugar futures may trip on glut concerns

M-grade sugar futures on the National Commodities and Derivatives Exchange (NCDEX) on Monday continued trading below the crucial support level of Rs 1,850 per 100 kilograms tracking falling spot prices amid thin trade, traders said. Spot sugar prices fell on selling pressure, supply glut and weak demand, they said.

"Prices are generally subdued and are likely to continue in the same manner till the end of this month," said Chandrakant Sanghvi, a Mumbai-based trader.

The release of 100,000 tonne of sugar as additional quota for August to reign in spiralling prices after torrential rains in Maharashtra, over and above the earlier quota of 1.1 million tonne, has dented prices, Sanghvi said.

Traders said the problem of plenty has been aggravated by the regular arrival of around Rs 600-700 tonne of sugar into the markets every day.

September sugar futures continued trading below Rs 1,850 per 100 kg and ended at Rs 1,841, down Rs 3 against the previous close.The contract had touched a low of Rs 1,835 per 100 kilogram during the day's trade.

"Volumes traded are low and this is also pulling down prices, said Jigar Pandit, a trader with Sharekhan Commodities.