NYBOT raw sugar futures finished marginally firmer on Thursday as speculative profit-taking nearly wiped out the gains stemming from early trade and speculative buying in the market, brokers said.
October sugar inched up 0.01 cent to close at 8.24 cents a lb, moving between 8.17 and 8.38 cents, which equalled the lifetime peak in the contract. March added 0.03 to 8.70 cents and distant months went up 0.03 to 0.05 cent.
"We had a little pop and then it died down," said Marius Sonnen of trading house Sonnen and Co Inc.
He said the longer-term prospects of sugar prices look positive but the speculative fund-inspired advance could be vulnerable short-term to profit-taking in the market.
Speculative and trade buying, particularly in the back months, enabled sugar to hit contract highs but profit-taking and some producer sales capped the advance, dealers said.
"The market managed to hold its ground and will probably do better next week," a floor dealer said. "We should see a dip tomorrow on more profit-taking with the weekend coming up."
Analysts took note of news from the International Sugar Organisation that market fundamentals do not justify the surge in sweetener values since the anticipated deficit in 2004/05 of 2.0 to 3.0 million tonnes is not that large.
Technicians peg resistance in the October contract at its lifetime high of 8.38 cents and then 8.50 cents. Support would be at 8.04 cents, 7.97 and today's low of 7.92 cents.
Final estimated volume was 32,014 contracts, from Wednesday's tally of 42,196 lots. Call volume hit 13,421 lots while puts stood at 7,812 lots. Open interest in the No 11 sugar market rose 2,467 to 307,247 lots as of July 14.
Ethanol futures closed higher, with September up 3.50 cents to 95 cents a gallon. Open interest was unchanged at one lot as of July 14.
US domestic sugar prices finished lower. September dropped 0.10 to 20.28 cents a lb and November shed 0.07 to 20.53 cents. Except for one contract, distant months declined 0.04 to 0.11 cent.
Final estimated volume stood at 431 lots, from the prior count of 1,230 lots.
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