Raw sugar futures rose 1.4 percent on Monday in New York, accelerating a recovery from a six-week low hit three sessions ago, but it was not clear that the market had turned the corner. At the New York Board of Trade, the key March raw sugar contract settled up 0.12 cent at 8.60 cents a lb. It opened well above Friday's 8.49 cent high and stayed buoyant, trading from 8.52 to 8.61.
Dealers said the gap left on the charts looked constructive but noted that volume was a light 20,882 contracts, according to an estimate after the close cited by traders. Official turnover was 15,718 on Friday.
"I don't see any real sized demand, but the selling kind of eased off and it's allowing the market to bounce a bit," said Mike McDougall, head of the Brazil desk at FIMAT, citing a lack of selling by producers and funds.
May sugar settled up 0.08 cent at 8.70 cents a lb. The other contracts went up 0.07 to 0.08 cent.
March sugar hit its lowest price since September 21 on Wednesday. Funds liquidated positions but are believed to remain very long, since chasing the contract up to a high at 9.37 on October 12.
Analysts have said supply and demand for the current year are roughly in balance.
Some have looked for support from the potential for strong consumer demand from countries like India. India's cane crop has suffered from drought.
McDougall pegged support for raws at the overnight gap at 8.49 and 8.52 cents, with 8.35 cents the next stop below. Resistance is seen at 8.69 and 8.80 cents.
US domestic sugar prices closed softer Friday.
January sugar fell 0.12 cent to 20.36 cents a lb and March went down 0.07 cent to 20.45 cents.
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