Raw sugar prices closed higher on Monday on buying by small speculators in quiet dealings and the market could stay in a band this week due to a dearth of leads, brokers said.
The New York Board of Trade's October raw sugar contract increased 0.22 cent to end at 15.58 cents per lb, dealing from 15.30 to 15.74 cents. March rose 0.24 to 15.95 cents. The rest gained from 0.10 to 0.24 cent.
"It's really been a nothing day, given how light the volume was. It's been steadier on local buying but it's off the highs and we were just in the middle of the range. We could see the same type of trading tomorrow," a floor dealer said.
The market's fundamental outlook is seen by most in the trade as being in rough balance for 2006/07. Demand and any spike in crude prices which would tempt leading grower Brazil to use more cane to manufacture the alternate fuel ethanol will be the prime factors in prices, the analysts said.
Sugar slipped at the start to hit its lows for the day and then gradually moved higher to its highs on speculative buying, dealers said. The same speculators sold the market at the highs going into the conclusion of business. There was also no reaction in the market to the collapse of the Doha round of farm trade talks, analysts said.
Technicians pegged support for the October contract at 15.20 and the area of 14.97/15.00 cents, with resistance at 15.75 and 15.95 cents. Volume before the close stood at 20,172 lots, against the previous 34,201 contracts. Call volume touched 10,133 lots and puts hit 2,897 lots. Open interest in the No 11 raw sugar market rose 1,031 lots to 464,280 lots as of July 21.
The ethanol futures market was untraded. US domestic sugar prices ended mixed. September fell 0.21 to 22.50 cents per lb and November lost 0.13 to 22.42 cents. Two contracts aside, the rest were flat. Trades before the close hit 26 lots, from the prior tally of 34 lots.
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