Buoyed by a pick-up in demand from bulk consumers and a firming trend overseas, sugar prices rose by 0.90% in futures trade today as speculators enlarged their positions.
At the National Commodity and Derivatives Exchange, sugar for August delivery was trading Rs 25, or 0.90%, higher at Rs 2,806 per quintal, with an open interest for 33,190 lots.
Likewise, sugar futures for July delivery also rose by Rs 18, or 0.66%, to Rs 2,730 per quintal, with a business turnover of 15,520 lots.
Analysts attributed the rise in sugar futures to a pick-up in demand from bulk consumers in the spot market and a firming trend overseas amid fears of a shrinking cane crop from the world's leading producer, Brazil.
The allocation of a lower quota of sugar by the government for sale in the open market and ration shops in July also supported the upside, they said.
Meanwhile, white sugar futures hit a record peak in the overseas market yesterday, while raw sugar jumped more than 5%.
