NYBOT raw sugar futures settled Wednesday at a five-week low on relentless speculative fund liquidation, with follow-through pressure seen grinding the market down in the days ahead, brokers said. The key March raw sugar contract sank 0.15 cent to finish at the day's low of 8.35 cents a lb, with the session peak at 8.53 cents.
It was the lowest close for sugar on a spot basis since finishing at 8.28 cents on September 28, 2004. May lost the same to end at the day's low of 8.51 cents. One contract aside, the rest fell 0.13 or 0.14 cent.
Mike McDougall, senior vice-president of FIMAT USA Inc, said sugar has been under strong fund pressure for a while caused by the desire of the funds to cash in their gains.
Technicians said support in the March raw sugar contract would now be in the region of 8.33 and then down to 8.28 cents, with 8.18 and 8.13 cents further afield. Resistance was seen at 8.50 and 8.55 cents.
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