New York sugar softens

Raw sugar futures closed lower on Thursday on switch-related pressure as a major commodity fund began moving positions out of the spot contract and bearish fundamentals keep the market under pressure, brokers said.
The New York Board of Trade's key July raw sugar contract fell 0.11 cent to end at the day's low of 8.58 cents per lb., with the session peak at 8.69 cents.
It was an inside day since the range was within on Wednesday's 8.54 to 8.72 cents band. October sugar lost the same to end at 8.86 cents. The rest lost from 0.07 to 0.12 cent.
The Intercontinental Exchange's NYBOT electronic market for sugar showed the July contract down 0.10 cent to 8.59 cents at 1:14 pm. "We expect to see more of the roll from this index fund over the next 4 to 5 days.
Most of the running in the market will be dominated by switches almost until the end of the month," a long-time floor dealer said. Sugar's ability to post price gains are seen by most analysts as doubtful due to a record cane harvest in top grower Brazil and news that India, the world's biggest consumer, has begun exporting the sweetener as well.
Futures traded unchanged at the start, but gradually lost ground from investors liquidating positions in July and moving them to the market's back months, they said.
On switches, open interest in the July contract sank 11,168 lots to 287,795 lots as of June 6, while interest in October gained 9,403 to 241,429 lots.
The July contract goes off the board on June 29. Technicians pegged support in the July contract at 8.50 and 8.20 cents, with resistance at 8.74 and 9.00 cents.
Open-outcry volume around noon was at 8,026 lots, from the previous tally of 25,818 lots. Call volume was 8,923 lots and puts 3,224 lots. NYBOT said on Wednesday's screen trade were 67,625 lots and total volume 93,443 lots.
Open interest in the No 11 raw sugar market dropped 8,518 lots to 744,137 lots as of June 6. The ethanol market was unthreaded. US domestic sugar prices ended mixed.
The July contract rose 0.05 to 21.48 cents per lb. while September added 0.07 to 21.27 cents. The rest ranged from 0.04 cent firmer to 0.07 cent lower.
Screen volume traded on Wednesday in the No 14 sugar market hit 127 lots and open-outcry deals amounted to 55 lots. On the electronic No 14 sugar market, the September contract added 0.08 to 21.28 cents at 1:14 pm.