Indian near-month sugar futures rose on Monday afternoon, and traders said they expected more gains because deliveries were likely to be lower than expected.
"Only about 6,000 tonnes of delivery is now expected against an open interest of over 29,000 tonnes in the July contract. This will lead to some demand for the July contract in the coming days," an analyst at IL&FS Investsmart Commodities Ltd, said.
"This should help prices to rise by 25-30 rupees in the July contract," he said. The contract expires on July 20. At 3 pm (0930 GMT), the July contract on the National Commodity and Derivatives Exchange rose 1 rupee to 1,302 rupees ($32.2) per 100 kg. The August contract eased 0.15 percent to 1,341 rupees.