Raw sugar prices ended slightly higher on Friday due to trade and speculative buying although the overall tone of business seems to indicate lower prices going into next week, brokers said.
The New York Board of Trade's October raw sugar contract rose 0.05 cent to settle at 15.36 cents per lb, in a band from 15.21 to 15.38 cents. On a spot basis, the contract ended at a one-month low at 15.31 cents on Thursday. March added 0.02 to 15.71 cents. Aside from two contracts, the rest were flat at the close.
"We got some trade buying and probably destination pricing today, but I think the specs are more inclined to get it lower, so we will probably fall some more next week," a financial house analyst said.
Traders said speculators may try to push the key October contract down to 14.97 cents, basis October, and see if they can force automatic sell orders to kick in at that level and take the market down further. Technicians pegged support for the October contract at 15.20 and the area of 14.97/15.00 cents, with resistance at 15.50 and 15.95 cents.
Volume before the close stood at 28,273 lots, against the previous 38,704 contracts. Call volume touched 14,635 lots and puts hit 5,894 lots. Open interest in the No 11 raw sugar market rose 842 lots to 463,249 lots as of July 20.
There were no deals in the ethanol market. US domestic sugar prices ended mostly lower. September shed 0.07 to 22.71 cents per lb and November fell 0.05 to 22.55 cents.
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