NYBOT raw sugar futures closed softer Wednesday on sales by small speculators as the market came off after hitting a 3-year peak yesterday, brokers said.
The sweetener will likely drift until the annual Sugar industry dinner in London on Friday. But the market is seen staying strong longer-term due to bullish fundamentals which include a supply deficit in the 2004/05 season, they said.
March sugar shed 0.10 cent to finish at 8.95 cents a lb, dealing between 8.92 and 9.06 cents. May lost 0.08 to 8.99 cents. Aside from one contract, the rest declined 0.01 to 0.03 cent.
Analysts believe raw sugar prices, basis the spot month, will continue to rally because of the deficit and expected hefty buying from consumers like India, the world's biggest consumer of sugar.
Comments
Comments are closed.