Sugar recovers in futures trade on festive demand

Supported by a pick-up in demand in the spot market for the ongoing festive season, sugar futures recovered by 0.21% to Rs 2,797 per quintal today.

However, ample supply in the market limited the gains.

At the National Commodity and Derivatives Exchange, sugar for delivery in October rose by Rs 6, or 0.21%, to Rs 2,797 per quintal, with an open interest for 4,590 lots.

Similarly, sugar for delivery in September also edged up by Re 1, or 0.04%, to Rs 2,738 per quintal, with an open interest for 32,180 lots.

Analysts said sugar futures prices recovered as speculators enlarged their positions, driven by a pick-up in spot market demand for the ongoing festive season. However, the adequate stocks position in the market restricted the
gains, they added.