Sugar futures prices today shot up by 1.55% to trade at a new high of Rs 3,607 per quintal after speculators built-up fresh positions, supported by the strong demand in the spot market for the ongoing festive season amid poor rainfall in cane-growing regions.
At the National Commodity and Derivatives Exchange, sugar for September delivery traded Rs 55, or 1.55%, higher at a new high of Rs 3,6076 per quintal, with an open interest of 40,640 lots.
The August contract traded Rs 37, or 1.05%, higher at Rs 3,553 per quintal, with an open interest of 13,240 lots.
Meanwhile, small sugar (S-30) rose by Rs 30-74 per quintal to Rs 3,102-3,235 per quintal at Mumbai's Vashi wholesale market in yesterday's trade.
Analysts attributed the rise in sugar futures to huge positions created by speculators, driven by strong demand in the spot market following the festive season and poor rainfall in all key growing areas in the country, which could hurt the output next year.
