NYBOT raw sugar futures finished lower Friday as speculators cashed in their profits after running the sweetener up a 19-month peak, although players said bullish fundamentals should keep values buoyant.
March sugar slid 0.16 cent to conclude at 8.90 cents a lb, ranging from 8.87 to 9.10 cents. May lost 0.11 to 8.96 cents and, except for two contracts, the rest shed 0.04 cent.
"The market feels strong right now," said James Cordier, an analyst for Liberty Trading Group, adding though that prices could may slip because they had gone up "too high and too fast."
Sugar has bounded to its highest level in almost two years on the back of a significant supply deficit in the 2004/05 season and stronger demand from buyers like India, the world's largest consumer of the sweetener but whose crop suffered from poor weather.
The raw sugar market popped up to its highs for the day but started coming under pressure from trade and speculative players, floor sources and brokers said.
After the initial wave of selling, the market stabilised when it found support from trade accounts, they said.
Traders peg resistance in March delivery at 9.10 and 9.20 cents, with support at 8.84/87 cents and 8.55 cents.
Final estimated volume hit 29,245 lots, down from Thursday's tally of 47,833 lots.
Call volume was 10,895 lots while puts reached 2,791 lots. Open interest fell 177 lots to 303,134 lots as of September 30.
Ethanol futures finished flat again, with November ending at 100 cents a gallon.
US domestic sugar prices ended mostly easier Friday. November slipped 0.02 cent to 20.40 cents a lb and January lost 0.03 to 20.39 cents.
Except for two contracts, the rest declined 0.01 to 0.05 cent.
Final volume stood at 816 lots, down from 892 lots yesterday.
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