New York sugar finishes mixed

Raw sugar futures settled mixed on Monday as trade buying nudged the front contracts into positive territory although operators feel commodity funds may eventually press the market lower in the days ahead.
The New York Board of Trade's March raw sugar contract added 0.05 cent to close at 11.42 cents per lb, in a band from 11.21 to 11.47 cents.
May rose 0.02 to 11.44 cents. Two contracts aside, the rest lost 0.01 or 0.03-cent. "The funds were leaning on it, but trade and destination buying allowed us to come back and this forced the locals to cover. I still think the specs and the funds would try to press it down to that recent low at 11.15 (cents, basis March)," a brokerage house trader said.
The market took note of news that analyst Jonathan Kinsman told Reuters in London sugar prices had hit a temporary floor between 10.60 and 12.60 cents, but prices may come off when the next center-south cane harvest in top grower Brazil comes on stream next year.
The market is contending with a surplus in 2006/07 that would top 5.0 million tonnes, although some brokers feel demand and fears of a crude spike which could divert cane into the production of the alternative fuel ethanol may provide support for sweetener values. The market came under pressure shortly after the start from speculative fund selling, but trade and consumer buying stemmed the rout, traders said.
Technicians feel support for the March contract was now at 11.15 and then 11 cents, with resistance at 11.50 and up to the region of 12 cents. Floor dealers said estimated final volume hit 46,057 lots, from the prior count of 58,358 lots. Call volume amounted to 10,508 lots and puts hit 2,416 lots.
Open interest in the No 11 raw sugar market rose 3,028 to 557,836 lots as of December 8. No deals were done in the ethanol market. US domestic sugar prices ended lower. The March contract fell 0.07 to 19.56 cents per lb and may lose 0.11 to 19.59 cents. One contracts aside, the rest slid from 0.09 to 0.22 cent. Trades before the end reached around 400 lots, from the previous count of 124 lots.