Raw sugar futures closed easier on Friday on speculative sales, with the market seen staying in a range for the meantime going into next week, analysts said. The New York Board of Trade's May raw sugar contract fell 0.09 cent to end at 9.03 cents a lb., dealing from 9.00 to 9.10 cents. July lost the same to 9.22 cents. Distant months retreated 0.04 to 0.07 cent.
Judy Ganes of commodity firm J. Ganes Consulting said there was "nothing dramatic" in today's trade, although many players were trying to hold the market at its high levels.
Sugar has rallied recently on the back of strong consumer buying from India and possibly Russia and expectations of a wider deficit in the 2004/05 season. But Ganes feels production could easily rebound in 2005/06 and the market could return to a surplus then.
Futures lost ground from the opening bell with most of the speculators cashing in their gains and selling the nearby months, dealers said. "But the trade's in there buying and we just could not get below 9.00 (cents, basis May)," a floor broker said.
"If we can get this thing below 9.00 next week, then we may hit (automatic sell order) stops to take us further down." Technicians said resistance in the May contract is at 9.24 and 9.30 cents, with support at 9.05 and 9.00 cents.
Estimated volume before the close of trade stood at 26,941 lots, from the previous 36,766 lots. Call volume at that time reached 5,392 lots and puts hit 1,675 lots. Open interest in the No 11 sugar market went up 1,019 contracts to 360,074 lots as of March 17.
Ethanol futures finished unchanged with the April contract settling at 110 cents a gallon. US domestic sugar futures ended mostly softer. May was flat at 20.49 cents a lb., while July eased 0.01 to 20.58 cents.
Except for one contract, distant months declined 0.01 or 0.02 cent. Volume traded before the conclusion of business reached 521 lots, from a total of 307 lots previously.
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