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CSCE raw sugar futures ended softer Wednesday on light speculative sales in range-bound business, with most of the running in the market taken up by players engaged in switch trades, brokers said.
CSCE March sugar sagged 0.07 cent to finish at 5.68 cents a lb, moving from 5.66 to 5.77. May lost the same and closed at 5.88 cents. Back months fell 0.01-0.06.
Open interest in March fell 3,617 lots to 131,494 as of February 3. Interest in May rose 1,800 to 50,135 lots.
The market edged higher at the start to quickly reach its high for the session on early trade buying, but producer sales capped sugar and light speculative pressure forced the sweetener down to near its lows at the close, dealers said. The benchmark March contract remains trapped in a band from 5.50-5.60 to 5.85-6.00 cents and shows seemingly little inclination to stage a breakout, they said.
Technicians said resistance in the March sugar contract would be at the zone of 5.88/93 cents, 6.00 and then the gap running from 6.07/10 cents. Support was pegged at 5.65/66 and 5.50 cents.
Final estimated volume reached 23,819 lots, from the previous 32,525 lots. Call volume was at 1,607 lots and puts stood at 917 lots. Open interest in the No 11 sugar market fell 1,048 lots to 265,575 lots as of February 3.

Copyright Reuters, 2004

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