New York sugar easier

Raw sugar futures closed softer on Friday on producer sales and speculative profit-taking as the market waits for leads although the fundamentals are pointing to lower values into next week, brokers said.
The New York Board of Trade's March raw sugar contract dropped 0.13 cent to end at 12.24 cents per lb, ranging from 12.15 to 12.45 cents. May fell 0.07 to 12.19 cents. Back months were flat or 0.04 cent lower. James Cordier of Liberty Trading Group said an attempt by the March contract to get past 12.50 cents was met by origin sales and "that stopped the rally for now."
Floor sources said that while the longer-term prospects for sugar are weighed down by a supply glut, the short-term issue for the market is whether it can hold the recent low of around 12.02 cents in March and rebound from there. "Holding the lows, especially 12.02, would mean we can work our way higher. Sugar is really looking for direction at this time," one said.
Sugar futures have pulled back after marching to a 6-week high on commodity fund buying. "We were due for a pullback and that's what we got the past few days," a floor broker said. Cordier feels sugar will find it tough sledding to punch higher unless fresh impetus is provided by consumer buying in the market.
Another trader said sugar would also take its cue from the energy market since a spike in values there may tempt producers to use more cane to manufacture the alternate fuel ethanol. Technicians feel resistance for the March contract at 12.50 and 12.57/59 cents, with support at 12.15 and 12 cents.
Volume before the close reached 36,149 lots, from the prior count of 90,649 lots. Call volume amounted to 10,174 lots and puts reached 10,140 lots. Open interest in the No 11 raw sugar market jumped 5,016 to 535,861 lots as of November 30. The ethanol market was untraded.
US domestic sugar prices ended flat to higher. The January contract rose 0.10 to 19.95 cents per lb and March gained 0.05 to 19.80 cents. One contract aside, the rest were flat to 0.05 cent up. Volume before the close reached 46 lots, from the previous count of 143 lots.