Raw sugar futures settled easier on Tuesday on speculative fund sales in subdued dealings, with the sweetener seen drifting in a band due to a lack of market-moving news, brokers said. The New York Board of Trade's July raw sugar contract fell 0.12 cent to end at 8.56 cents a lb., near the bottom of its 8.54 to 8.68 cents band. October lost 0.07 to 8.56 cents as well. The rest shed 0.03 to 0.06 cent. "It's been very dull. There's no real standout feature in the market.
We could be like this for a while if we don't get any news," a dealer for a floor broker said. Dealers said the July contract appears pinned between 8.50 and 9.00 cents.
The outlook for sugar is mixed. Some feel a shortage and increased consumer buying should buoy the market, but others feel the global balance is in equilibrium and the pace of demand is not as robust as once thought.
Futures opened unchanged as expected but the inability to grind higher encouraged most speculators to drive the market south, analysts said. "The funds and the locals kept the pressure on the market," another trading house broker said.
Technicians feel support in the July contract is at 8.40 and 8.25 cents. Resistance was at 8.73 and 9.00 cents. Estimated volume before the market closed amounted to 13,874 lots, from the previous 20,228 lots.
Call volume at that time was 4,858 lots and puts stood at 1,626 lots. Open interest in the No 11 raw sugar market dove 3,362 lots to 345,819 contracts as of May 2.
Ethanol futures were untraded for the second consecutive session, with no quotes given in the spot June ethanol contract. US domestic sugar futures ended higher.
July sprang up 0.10 to 21.80 cents a lb. and September added 0.04 to 21.73 cents. Except for two contracts, the rest added 0.01 cent. Volume before the close of business hit 383 lots, vs. 44 lots previously.
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