New York sugar closes lower

Raw sugar futures finished easier on Tuesday on late speculative sales while switch business was featured from players moving positions out of the spot contract before it expires at month's end, brokers said.
The New York Board of Trade's May raw sugar contract shed 0.37 cent to conclude at 17.96 cents a lb., moving from 17.90 to 18.27 cents. July fell 0.33 cent to 18 cents. Back months lost 0.27 or 0.28 cent.
James Corridor of Liberty Trading Group said futures were trying to stay just above 18 cents, basis may, but speculative sales and switches were the order of business in the market.
Open interest in the May contract fell 338 lots to 200,974 lots as of April 3. The contract goes off the board April 28. Most analysts feel that, with top grower Brazil still diverting cane into the manufacture of the alternative fuel ethanol, sugar prices should remain buoyant.
Brokerage houses like FIMAT sounded a note of caution, though, that, while supplies of white sugar may be tight due to changes in the European Union's sugar regime, raw sugar supplies may go into surplus, barring any weather problems.
Futures lost ground from the bell and steadily eroded from speculative sales. The market managed to hold just above 18 cents, basis might, until a late selling flurry hit near the close, traders said. "It's just going back and forth, so we may go back over 18 (cents, basis May) tomorrow," one said. Technical analysts felt resistance in the May contract was at 18.40/50 and 19 cents. Support was at the area around 17.65/70 cents. Volume before the end of trade reached around 55,756 lots, against the previous count of 48,170 contracts.
Call volume touched 21,312 lots, while puts hit 11,815 lots. Open interest in the No 11 raw sugar market climbed 3,755 lots to 485,772 lots as of April 3. There were no trades in the ethanol market. US domestic sugar prices ended mixed. The May contract rose 0.08 cent to 23.98 cents a lb. and July shed 0.03 to 23.88 cents. The rest were flat to up 0.10 cent. Volume before the close stood at 994 lots, from the prior count of 137 lots.