Raw sugar futures closed higher Wednesday, eyeing a 29-year high on spurts of fund buying, strong fundamentals and positive technical indicators, brokers said. The March raw sugar contract rose 0.74 cent or 2.7 percent to settle at 28.38 cents per lb. March traded from 27.30 to 28.55 cents. Volume traded in March reached 48,751 lots.
The benchmark spot contract closed at a 29-year high Tuesday for the second straight day at 27.64 cents per lb, after hitting a high at 28.90 cents. The raws moved mostly within Tuesday's session range, with the market quietly looking for direction earlier in the session and lacking any cue from the dollar, which was little changed - traders.
Fund buying on the dips kept the market positive while late-day strength in US crude futures also provided some spillover support - traders. "Looks like the fundamentals are still strong for the market and, technically speaking, the market still looks good, so looks like we're definitely looking for 30 cents." - Alex Oliveira, senior sugar analyst for Newedge USA, told Reuters Insider TV.
Lower production in top grower Brazil and the expectation for strong demand in Asia continued to support the market - traders. Total volume Tuesday reached a heavy 140,633 lots, compared with the previous session's 85,503 lots - ICE data. Open interest in the No 11 sugar market stood at 842,341 lots as of January 5, versus the previous 841,580 contracts - exchange data.
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