Raw sugar futures tumbled due to late speculative sales to finish on Thursday at a two-week low and the market could test the lower end of its trading band before the weekend, brokers said.
The New York Board of Trade's March raw sugar contract slid 0.26 cent, or by 2.2 percent, to close at 11.53 cents per lb, near the bottom of its 11.52-11.71 band.
On a spot basis, it was the lowest close for sugar since November 3 when it ended at 11.31 cents. May lose 0.21 to 11.69 cents.
The rest declined from 0.09 to 0.19 cent. Sugar has been moving in a band for most of the past few sessions between 11 and 12 cents, popping briefly over the 12 cents area before speculative liquidation beat it back. "The sugar market is looking for some fresh impetus," said Steve Platt of Archer Financial Services.
Market fundamentals are still leaning bearish, a sharp departure from the level in February when it rallied to a 25-year high. The rally spurred farmers in places like leading producer Brazil to plant more sugar. Sugar lost ground from the bell and speculative accounts steadily leaned on the market throughout the session, dealers said.
"The specs hit it late and the locals bailed," a dealer said, "The way it ended up, we could see it go below 11.50 and make a run toward 11 (cents, basis March) by next week or after that." Technicians feel support for the March contract would be at 11.50 and then in layers down to 11 cents. They forecast resistance at 12 and then 12.30 cents.
Volume before the close reached 28,608 lots, from the prior count of 35,234 lots. Call volume amounted to 9,217 lots and puts reached 5,821 lots. Open interest in the No 11 raw sugar market jumped 4,975 to 505,266 lots as of November 15. There were no deals in the ethanol market. US domestic sugar prices ended mostly easier. The January contract shed 0.03 to 19.75 cents per lb March eased 0.04 to 19.76 cents. The rest ranged from 0.04 cent up to 0.10 cent easier. Volume before the close reached 63 lots, from the previous count of 138 lots.
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