New York sugar lower

Raw sugar prices plunged to its lowest level since 2005 on Tuesday as the burden of a supply glut deflated the sweetener and the market could see more losses in the weeks ahead, analysts said. The New York Board of Trade's July raw sugar contract sank 0.46 cent or by 5.0 percent to end at 8.65 cents per lb., trading from 9.10 to a new contract low of 8.63 cents.
Based on the spot daily charts, it was the lowest close for the market since May 2005. Sugar prices topped out at a 25-year high of 19.73 cents in February 2006. Since then, the price of the sweetener has lost over 56 percent in value as production ballooned in response to the rally. The second position October raw sugar contract slid 0.41 cent to 9.00 cents, also hitting a contract low of 8.96.
The back contracts posted losses from 0.40 to 0.43 cent. On the IntercontinentalExchange's NYBOT electronic market for sugar, the July contract dropped 0.45 cent to 8.66 cents at 1:31 pm Electronic trading ends at 3:15 pm. The sugar market has been weighed down by the growing pile of sugar flowing out of major producers led by Brazil, the world's top grower and exporter, and India, the biggest consumer of the sweetener.
Sugar opened nearly unchanged and then went into near free-fall as investment funds dumped the market and triggered automatic computer generated sell orders, traders said.
Technicians who make trading decision based on where the price is pegged support for the July raw sugar contract at 8.50 and 8.00 cents, with resistance at 9.00 and 9.50 cents. Final open-outcry volume in sugar was at 29,747 lots, from the previous tally of 26,971 lots. Call volume was 32,305 lots and puts 27,495 lots.
NYBOT said on Monday's screen trade were 64,098 lots and total volume 91,069 lots. Open interest in the No 11 raw sugar market soared 8,823 lots to 737,398 lots as of May 14. No deals were done in the ethanol market. US domestic sugar prices ended mixed. The July contract rose 0.18 to 21.48 cents per lb., while September added 0.05 to 21 cents.