Sugar Futures closed higher on Wednesday on reports that Sugar mills in Maharashtra are unlikely to advance the cane crushing to October despite the Centre's request due to lack of labour and a likely major loss in recovery. Moreover, festival demand is also supporting the prices. The food ministry expects sugar output in 2017-18 (Oct-Sep) at 235-240 lakh tonnes (lt), much below 251 lt.

October raw sugar settled up 0.16 cent, or 1.2 percent, at 13.67 cents per lb as real's gains reduces producers' incentive to sell dollar-traded commodities in top grower Brazil, potentially strengthening sugar prices. Moreover, speculators monitoring Brazil rains, which are expected to benefit cane development but could disrupt harvesting in the short term.

Outlook

Sugar futures may trade sideways to higher on good demand and tight supplies.

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