Raw sugar prices settled marginally higher Wednesday on speculative buying and analysts were mulling if the sweetener has enough firepower to rally to its highest level in over 10 years in the coming sessions.
The New York Board of Trade's key March raw sugar contract rose 0.01 cent to end at 11.44 cents a lb, dealing from 11.32 to 11.60 cents. May added 0.02 to 11.45 cents. Two contracts aside, the rest were flat to 0.03 cent higher.
"I really think we had to take a break," a senior investment house broker said, adding the shrinking premium between white and raw sugar, slowing consumer demand and the fact the market is heavily overbought meant the sweetener is "due for a really good correction." Volume traded before the close amounted to 48,231 lots, vs. the previous tally of 118,436 contracts. Call volume hit 13,285 contracts and puts stood at 12,287 lots.
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