Sugar prices rose by 1% to Rs 3,017 per quintal in futures trade today as speculators created huge positions, buoyed by strong spot demand.
At the National Commodity and Derivatives Exchange, sugar for August delivery was up Rs 30, or 1%, higher at Rs 3,017 per quintal, with an open interest for 21,670 lots.
July sugar gained Rs 23, or 0.78%, higher at Rs 2,961 per quintal, with an open interest of 9,990 lots.
Medium sugar (M-30) rose by Rs 30/34 per quintal to Rs 3,100/3,241 per quintal at the Mumbai's Vashi wholesale market in yesterday's trade.
Analysts attributed the rise in sugar futures to huge positions created by speculators, driven by a firming trend in spot markets on the back of rising demand from bulk consumers and deficient monsoon in key growing areas.
Maharashtra, country's largest sugar producing state, has had very low rainfall in June which could hit yields.
