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Sugar marginally up on crushing delay

Agencies

Posted: Nov 22, 2012 at 1622 hrs IST

New Delhi Supported by a delay in cane crushing in sugar producing states, sugar futures prices rose marginally by 0.09 per cent to Rs 3,296 per quintal as speculators enlarged positions.

However, weak demand in the spot markets on higher selling by mills following a government directive to them to sell 4 million tonnes of sugar in the open market during October and November, limited the gains.

At the National Commodity and Derivatives Exchange, sugar for delivery in December rose by Rs 3, or 0.09 per cent, to Rs 3,296 per quintal, with an open interest of 36,250 lots.

The sweetener for delivery in January rose by Rs 2, or 0.06 per cent, to Rs 3,316 per quintal, with an open interest of 14,160 lots.

Marketmen attributed the rise in sugar futures prices to fresh positions created by speculators, driven by reports of a delay in cane crushing in key producing states due to farmers' demand for an increase in cane procurement prices.

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