Raw sugar futures closed easier on Wednesday on investor sales but the ability of the market to hold an area of support sparked trade buying which pared losses in the sweetener, analysts said. The March raw sugar contract ended down 0.53 cent at 23.08 cents per lb. Trading range from 22.52 to 23.89 cents. March volume was at 90,748 lots at 2:08 pm EDT (1808 GMT).
Spot October sugar fell 0.60 cent to close at 21.55 cents. James Cordier, analyst for brokers optionsellers.com in Florida, said sugar pulled back due to falling crude oil prices. He said sugar has performed strongly the past few sessions and "some profit-taking" was in order. Analysts said sugar's next move will be dictated by swings in the value of the dollar against other currencies.
Traders said they would look at the results of the two-day meeting of the US Federal Reserve. The trade is also looking at the results of the G20 summit meeting this week in Pittsburgh, Pennsylvania.
On switch trade, the market is gradually turning its attention to expiration of the spot October contract on September 30. Open interest in October stood at 83,416 lots as of September 22, down 22,740 lots from the previous session. Further out, sugar remains fundamentally bullish because of off-take from India along with short crops in Mexico and Pakistan.
Technicians put resistance in the March contract at 24 and 25 cents, with support at 22 cents. Volume traded Tuesday in the No 11 sugar market was at 111,406 lots, from the prior 82,581 lots - exchange data. Open interest in the No 11 sugar market was at 800,087 lots as of September 22, from the previous 816,574 contracts - exchange data.
Comments
Comments are closed.