Sugar futures gains on spot demand

Sugar prices rose 1.21 per cent at the futures trade today, buoyed by pick-up in demand at the spot market amid tight supplies by millers.

However, prospects of higher production in the current season, though, capped the gains.

At the National Commodity and Derivatives Exchange, sugar for delivery in August moved up by Rs 31 or 1.21 per cent to Rs 2,596 per quintal with an open interest of 14,230 lots. Likewise, July contract rose Rs 28 or 1.11 per cent to Rs 2,553 per quintal with a business turnover of 24,190 lots.

Analysts attributed the recovery in sugar futures to pick-up in demand from bulk consumers at the spot markets amid restricted supplies by millers.