Raw sugar futures finished easier Monday on mild profit-taking but the retreat was shallow and the market stayed near a 2-3/4-year high due to bullish technical and fundamental factors in the market, brokers said. The July raw sugar contracts slipped 0.03 cent to end at 15.02 cents per lb.
On Friday, the contract closed at 15.05 cents in the highest finish for sugar since late July 2006 based on the spot daily closing charts. The contract traded from 14.75 to 15.10 cents. It was an inside day since the range was within Friday's 14.27 to 15.13 cents band. Volume traded in the July contract reached 35,441 lots at 2:01 pm EDT (1801 GMT). October sugar shed 0.02 cent to end at 15.54 cents.
Larry Young, an analyst for brokers Infinity Futures, said the "trend is definitely higher" in sugar the rest of the week. Anticipated heavy buying by India of up to 3.0 million tonnes of sugar in 2009 has sparked the market. News of the delivery of 842,252 tonnes of raw sugar against the expired May raw sugar contract, most of which, is believed bound for India, stoked the rally.
Other possible buyers of sugar include Pakistan, Indonesia and possibly China, brokers said. "The next target in all this would be 16 cents. The funds like sugar because they felt it had been undervalued for some time," one said. Technicians believe resistance in the July contract is at 15.50 and 16 cents.
Support in July should be at 14.50 and 14 cents. Volume traded Friday in the No 11 sugar market was at 140,050 lots, from the prior 96,164 lots - the exchange said. Open interest for No 11 sugar market was at 659,286 lots as of May 1, from the prior 662,356 contracts - exchange data. The No 14 sugar contract showed the July contract up 0.10 cent at 21.50 cents at 2:02 pm volume on Friday in the No 14 market was at 20 lots, against the previous 72 lots - exchange data.
Comments
Comments are closed.