Raw sugar prices finished mixed on Thursday with speculative buying largely offset by trade sales as the market is seen consolidating given its recent surge to over 8-year highs, brokers said.
The New York Board of Trade's key March raw sugar contract eased 0.04 cent to settle at 11.69 cents a lb., moving from 11.51 to 11.74 cents.
May fell 0.02 to 11.64 cents.
One contract aside, the rest added 0.01 cent. Sugar had mounted a searing rally over fears that leading grower Brazil will divert cane into the production of the biofuel ethanol as a result of high crude prices.
The surge in sweetener values has served to crimp consumer interest. "The market still looks good for a rally, but it has calmed down a bit. It's consolidating and we have the (Jewish Yom Kippur) holiday which kept some guys out today," a veteran floor dealer said.
Sugar contracts tumbled at the start due to trade and speculative fund sales, but the trade and then fund buying stabilised the market to lead it back to within a few points of unchanged, dealers said.
Analysts said the market might still attempt to charge up to the psychological target of 12 cents, basis the key March contract, but it may take some time to do so.
"We're still pretty close to 12 (cents), but there's no rush to get there," one said. Volume traded before the close amounted to 31,882 lots, versus the previous tally of 40,417 contracts.
Call volume hit 8,396 contracts and puts stood at 3,705 lots. Technicians said they feel resistance for the March contract would be at the contract peak of 11.91 and then 12 cents.
Support would be at 11.65/66 and then 11.50 cents. Open interest in the No 11 raw sugar market fell 692 lots to 455,653 lots as of October 12.
Ethanol futures were not traded, with any quotes seen in the spot November contract.
US domestic sugar prices ended mixed. January shed 0.05 to 21.61 cents a lb. and March was flat at 21.57 cents. The rest ranged from down 0.02 cent to up 0.02 cent.
Volume traded before the end of business hit 192 lots, from the previous tally of 538 contracts.
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