NYBOT raw sugar futures finished mixed on Friday as nearby months were buoyed by buying from the trade and small speculators which wiped out downturn in the sweetener, with the market tipped to bound higher next week, brokers said.
October sugar rose 0.02 cent to conclude at 8.01 cents a lb., having ranged from 7.79 to 8.03 cents. March added 0.03 cent to 8.48 cents. Except for one contract, the rest retreated 0.03 to 0.07 cent.
"We washed out the weak longs today," said James Corridor of Liberty Trading Group.
He added sugar prices should start steady on Monday and possibly grind its way close to its contract highs again late next week. Floor sources said follow-through fund liquidation punished sugar down to its lows for the day, but the trade buying stabilised the market.
"The locals got too short and then they covered on the way back," a senior trading house broker said. "The only question we really have is whether the trade buying was tied to any cash offtake." Market fundamentals are seen by most players as staying bullish on expectations of higher consumer demand in the 2004/05 season.
Technicians forecast resistance in the October contract at its lifetime high of 8.38 cents and then 8.50 cents. Support was at 7.97, 7.92 and the days low of 7.79 cents. Final estimated volume was 40,233 contracts, from Thursday's tally of 27,345 lots.
Call volume hit 7,906 lots while puts stood at 4,250 lots. Open interest in the No. 11 sugar market declined 2,410 to 308,430 lots as of July 22. Ethanol futures ended flat, with September closing at 97.50 cents a gallon.
Open interest was steady at six lots as of July 22. US domestic sugar prices finished lower. September slid 0.21 cent to 19.90 cents a lb. and November lost 0.08 cent to 20.15 cents. Except for one contract, the rest were flat to 0.01 cent softer.
Final estimated volume stood at 164 lots, against the previous 1,326 lots.
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