New York sugar finishes mostly up

Raw sugar futures settled mostly higher on Wednesday, with nearby months getting a boost from trade buying as the market was seen staying in a band waiting for leads on its next move, brokers said. The New York Board of Trade's May raw sugar contract edged up 0.01 cent to close at 10.12 cents per lb, dealing from 10.06 to 10.24 cents.
On Monday, the contract finished at 10 cents in the lowest close for sugar on a spot basis since ending at 9.83 cents on August 29. July rose 0.03 to 10.20 cents. The rest ranged from 0.04 cent firmer to 0.01 cent softer. In the IntercontinentalExchange's NYBOT electronic market for sugar, its May contract added 0.04 cent to 10.15 cents at 1:18 pm.
EDT (1518 GMT). "It's probably range-bound for now. There's good support at 10 (cents, basis May) and you have (automatic buy order) stops over 10.25," a dealer for a brokerage house said. Attempts by sugar to stab higher are being held in check by the prospect of a huge cane crop from Brazil's key center-south region.
There is also news that the world sugar surplus in 2006/07 is expected to reach about 8 million tonnes, according to the International Sugar Organisation. The market was also watching the situation in Iran, but the tensions there had no marked impact at this time, dealers said.
Sugar started near its session highs and then came under relentless pressure from trade and speculative accounts, dealers said. Consumer buying emerged at the lows and this forced small speculators to cover their positions. Technicians see support for the May contract in the open-outcry pit at 10 and 9.90 cents, while resistance was at 10.50 cents.
Open interest in the No 11 raw sugar market rose 456 lots to 654,751 contracts as of March 27. Volume traded around noon stood at 12,240 lots, down from the prior open-outcry count of 24,030 lots. Call volume was 19,230 lots and puts 5,518 lots. NYBOT said on Tuesday's electronic volume were 55,596 lots and total volume was 79,626 lots.
No deals were done in the ethanol market. US domestic sugar prices ended higher. The May contract gained 0.15 to 21.05 cents per lb and July added 0.02 to 20.92 cents. The rest were flat to up 0.14 cent. The electronic No 14 sugar markets may contract increased 0.15 cent to 21.05 cents at 1:19 pm.