Raw sugar futures sprang to a firm close on Tuesday on investor buying, and brokers said the market seems poised to grind higher now that the recent weakness of the sweetener is over. "Sugar seems to have made a bottom for whatever reason and wants to move higher," said Jack Scoville, an analyst for brokers the Price Group in Chicago.
After going above an initial target of 12.50 cents in the October contract, its next target is 13.40 cents, he said. The benchmark October raw sugar contract added 0.16 cent to end at 12.43 cents after trading from 12.19 to 12.52 cents. Spot July added 0.22 cent to 11.06 cents, ranging between 10.81 and 11.12 cents.
Volume traded in the October contract came to 51,151 lots at 2:24 pm EDT (1824 GMT) while July hit 25,221 lots. Fundamentally, the market is still facing a sizeable surplus built up over the last two seasons. Volume traded Monday in the No 14 sugar market hit 158 lots, the exchange said.
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