New York sugar settles up

Raw sugar futures finished higher on Wednesday on trade and speculative buying as the market bounced from a two-year low, but a worsening glut may drag values lower over the long haul, analysts said. New York Board of Trade's key July raw sugar contract climbed 0.13 cent to conclude at 8.69 cents per lb., in a band from 8.54 to 8.72 cents.
On Tuesday, it ended at 8.56 cents in the lowest close for sugar since 8.50 cents in May 2005. October sugar rose 0.09 to 8.97 cents and the rest gained from 0.09 to 0.11 cent.
IntercontinentalExchange's NYBOT electronic platform for sugar showed the July contract up 0.13 cent at 8.69 cents at 1:16 pm. "The trade supported it at the lows, and the specs covered as a result. The play in the market has been the roll, and we should see more of that into next week," a floor dealer said.
But analysts said sugar's prospects over the coming months will be clouded by a record cane harvest in top grower Brazil and news that India, the world's biggest consumer, will be an active seller of the sweetener.
The market slipped at the onset of business, but trade and suspected consumer buying stabilised futures and enabled futures to post modest gains going into the close, they said. On switch dealings, open interest in the July contract dove 32,188 lots to 298,963 lots as of June 5 while interest in October gained 9,403 contracts to 241,429 lots.
The July contract goes off the board June 29. Technicians pegged support for July delivery at 8.50 and 8.20 cents, with resistance at 8.74 and 9.00 cents. Open-outcry volume around noon was at 16,013 lots versus the prior tally of 42,806 lots. Call volume was 7,683 lots and puts 6,839 lots.
NYBOT said on Tuesday's screen trade were 171,214 lots and total volume 214,020 lots. Open interest in the No 11 raw sugar market sank 18,087 lots to 752,655 lots as of June 5.
No deals were done in the ethanol market. US domestic sugar prices ended mixed. The July contract rose 0.09 cent to 21.43 cents per lb. while September gained 0.05 to 21.20 cents. Two contracts aside, the rest lost 0.01 or 0.06-cent. Screen volume traded on Tuesday in the No 14 sugar market hit 136 lots and open-outcry deals amounted to 573 lots. On the electronic No 14 sugar market, the July contract added 0.06 to 21.40 cents at 1:16 pm.