Sugar rises by 0.87% on spot demand

The sweetner for delivery in October contracts traded higher by 0.85%

Sugar prices were up 0.87% to Rs 2,308 per quintal in futures trade today as speculators built up fresh positions, driven by summer season demand from bulk consumers.

However, adequate stock position on higher supplies from mills and reports of higher output this marketing year capped the rise.

At the National Commodity and Derivatives Exchange (NCDEX), sugar for delivery in July rose Rs 20, or 0.87%, to Rs 2,308 per quintal with an open interest of 54,940 lots.

Also, the sweetener for delivery in October contracts traded higher by Rs 20, or 0.85%, to Rs 2,378 per quintal in 30,680 lots.

Analysts said fresh positions built up by speculators following pick-up in summer season demand from bulk consumers mainly led to the rise in sugar prices.