Raw sugar futures closed near its session lows on Wednesday as late speculative sales depressed values and the market is drifting after the turmoil caused by a sell-off in global markets this week, brokers said.
The New York Board of Trade's May raw sugar contract declined 0.08 cent to settle at 10.68 cents per lb, near the bottom of its 10.66 to 10.91 cents band. July lost 0.06 to 10.58 cents. The rest fell 0.05 or 0.06 cent.
In the IntercontinentalExchange's NYBOT electronic market for sugar, its May contract slid 0.10 cent to the day's low of 10.66 cents at 12:50 pm. EST (1750 GMT), with the session peak at 10.91 cents. "I think we're going to hang around here unless we get some world news that would really affect the market again," a long-time dealer for a financial house said. Market fundamentals are said to be pointing to lower values in the months ahead due to an anticipated increase in production in leading producer Brazil and top consumer India.
But consumer demand and a relatively tight nearby supply situation could help prop up prices for now, traders said. Trade and speculative buying enabled sugar to pop higher at the start, but the advance petered out when some more fund sales seeped into the pit, dealers said.
Technicians feel resistance for the May contract in the open-outcry pit at 11 cents, while support was at 10.50 and 10 cents. Open interest in the No 11 raw sugar market rose 1,899 lots to 650,161 contracts as of March 6. Volume traded around noon stood at 12,754 lots, from the prior open-outcry count of 12,982 lots.
Call volume was 13,100 lots and puts at 4,672 lots. NYBOT said on Tuesday's electronic volume was at 30,477 lots. No deals were done in the ethanol market.
US domestic sugar prices ended mixed. The May contract shed 0.02 cent to 20.85 cents per lb and July fell 0.05 to 20.81 cents. Two contracts aside, the rest were flat. The electronic No 14 sugar market saw its May contract trade 0.10 cent lower at 20.77 cents at 12:51 pm.
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