Raw sugar prices ended higher Wednesday on trade and speculative buying, but the longer-term outlook for the market was clouded by a supply glut and the prospect that investors will sell because they feel prices will be heading lower, analysts said.
The New York Board of Trade's October raw sugar contract rose 0.15 cent to end at 11.64 cents per lb., dealing between 11.43 and 11.98 cents. It was the best close for sugar on a spot basis since it traded around 11.80 cents last week. Last Friday, the contact settled at 11.39 cents in the worst finish for sugar since it ended at 11.20 cents on November 9.
The March contract gained 0.12 to 12.44 cents. The back contracts added 0.07 to 0.11 cent. Technicians saw support for the October contract at 11.50 and 11.20 cents, with resistance at 12 and 12.35 cents.
Final volume stood at 73,620 lots, up from the previous count of 59,995 lots. Call volume reached 11,761 lots and puts amounted to 13,208 lots. Open interest in the No 11 raw sugar market rose 827 lots to 505,361 lots as of September 5. There were no deals in the ethanol market.
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