Sugar futures ease as crushing gathers pace

MUMBAI, Dec 2 (Reuters) - India sugar futures eased on Tuesday tracking a rise in cane crushing in Uttar Pradesh, the country's second largest producer, putting pressure on existing stocks, analysts and a senior industry official said.

However, good spot demand, mainly from traders buying to meet monthly needs, limited the losses.

At 11:05 a.m., the January futures contract NSMF9 on the National Commodity and Derivatives Exchange was down 0.33 percent at 1,840 rupees per 100 kg, after touching a high of 1,849 rupees.

Millers in western and central parts of Uttar Pradesh have started large-scale crushing and very soon millers in the eastern part will follow, a senior industry official said.

Higher crushing would put pressure on existing stocks and millers may be forced to make space for fresh stocks, analysts said. (Reporting by Abhishek Shanker; editing by Sunil Nair)