New York sugar settles firmer

Raw sugar futures closed higher on Friday on trade and options-related buying, and brokers said momentum from this week's move may enable sugar to make a run at 10 cents in the days ahead. New York Board of Trade's key October sugar contract went up 0.09 cent to close at 9.69 cents per lb., dealing from 9.64 to 9.83 cents.
The rest ranged from 0.06 cent higher to 0.08 cent lower. The IntercontinentalExchange's NYBOT electronic platform for sugar showed the October contract up 0.07 cent at 9.67 cents at 1:38 pm.
"It may take a stab at 10 cents but you kind of feel the producers will knock it back as soon as we get there," a dealer for a financial house said, referring to the October contract. Fundamentally, the market is looking at longer-term pressure from excessive supplies that hang over sugar. But there could be some near-term strength from importers who may want to book orders at what would be a low price, analysts said.
Futures popped higher from the opening bell on buying of both the spreads between the spot contract the back months and in the options pit, dealers said. The market stalled at the highs and some speculative accounts that went along for the ride to higher ground got out of the ring, they said. Some last-minute switch trade got done as investors moved positions out of front July before it expires next week.
Open interest in the July contract dove 14,343 lots to 65,910 lots as of June 21. July goes off the board on June 29. Technicians pegged support in the October contract at 9.50 and 9.00 cents, with resistance at 10 cents. Open-outcry volume around noon was at 17,898 lots versus the previous tally of 18,587 lots.
Call volume was 29,059 lots and puts 7,073 lots. NYBOT said on Thursday's screen trade were 90,470 lots and total volume 109,057 lots. Open interest dropped 7,293 lots to 669,336 lots as of June 21. The ethanol market was unthreaded. US domestic sugar prices ended mixed. The September contract fell 0.03 cent to 21.45 cents a lb. while November held steady at 21.04 cents.
The rest were flat to 0.08 cent firmer. Screen volume on Thursday amounted to 209 lots and 101 lots were traded in the pit. On the electronic No 14 sugar market, January was 0.03 cent lower at 21 cents at 1:39 pm.