UPDATE 1-Indian sugar futures end flat; traders wary

(Updates to close)

MUMBAI, May 9 (Reuters) - Indian sugar futures ended almost flat on Friday as high crude oil prices that drove up demand for biofuel from sugarcane, were off-set by muted demand in the spot market.

Traders said participants were wary of taking positions after the government suspended futures trading in four commodities -- soyoil, potato, chickpea and rubber -- for four months to curb speculation and contain spiralling prices. See: [ID:nBOM242471]

Indian annual inflation rose to a fresh 3-½ year high at 7.61 percent in late April, edging up from 7.57 percent a week earlier. [ID:nDEL133598]

Spot sugar prices in Delhi fell 0.65 percent to 1,530 rupees.

"There is not much to say on the demand front. The prices are holding because of the high crude oil prices," an analyst in IL&FS Investsmart Commodities Ltd said.

Ethanol, a by-product derived from sugarcane crushing, is one of the popular sources of biofuel and is blended with gasoline.

U.S. crude oil CLc1 touched a new high of $125.98 a barrel on Friday.

Following are the closing prices of sugar futures in rupees per 100 kg on the National Commodity and Derivatives Exchange <0#NSM:>