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NYBOT raw sugar futures ended Thursday at a two-week high on fund and trade buying, with follow-through interest seen stoking a further advance in the sweetener this week, analysts said.
Sugar values are seen turning higher due to an anticipated supply deficit in the 2004/05 season and possible purchases by countries like India, the world's biggest consumer, they said.
October sugar climbed 0.12 cent to end at the day's high of 7.88 cents a lb, with the session low at 7.76 cents. It was the highest finish for sugar on a spot basis since closing at 7.92 cents on September 8.
Active March added 0.23 to 8.77 cents, in a band from 8.59 to 8.78 cents. The rest were flat to up 0.22 cent.
Open interest in the October contract fell 7,981 lots to 34,222 lots as of September 22. Interest in March gained 2,348 to 163,461 lots.
Traders saw support in October at 7.80 and 7.35 cents, with resistance at 8.00, then 8.10 cents.

Copyright Reuters, 2004

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