CSCE raw sugar futures settled with modest gains on Monday in a short-covering bounce after their recent slippage, brokers said.
With fundamentals divided, brokers said funds were likewise split on sugar's short-term direction, and were seen both selling and buying.
"Funds were once again sellers today and put pressure on the market.
There was some fund buying too that may have been new buying for 2004. We have conflicting fundamentals - sugar fundamentals are negative, but external fundamentals are potentially supportive," said one sugar broker.
March sugar rose 0.03 cent to close at 5.70 cents a lb, in a 5.70 to 5.82 cents trading band. Last Wednesday's finish was the lowest for the contract since trading around 5.60/65 cents in September 2002.
May sugar ended 0.04 cent higher at 5.90 cents and the rest settled 0.04 to 0.06 cent higher.
After ending 2003 at the year's low last Wednesday, some traders said they thought sugar was oversold and, as a result, due for some corrective buying as trading resumed on Monday.
Raw sugar futures and options markets were shut Thursday and Friday in observance of New Year.
Technicians peg support in the March contract at 5.66 cents with a key downside target at 5.50 cents.
Resistance looms at 5.84 cents, 5.91 and 6.00 cents. On the physical front, Tunisia bought 14,000 tonnes of white sugar for March delivery at $230 a tonne, cost and freight.
Final estimated volume reached 28,858 lots from Wednesday's tally of 26,307 lots. Call volume amounted to 3,563 lots, with 2,770 puts.
Final traded volume came to a mere 100 lots, down from 710 lots Wednesday.
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