Raw sugar futures closed higher on Friday on speculative fund buying but a paucity in leads kept values trapped in a range and brokers feel the market will not likely break out of its band next week. ICE Futures March electronic sugar contract added 0.05 cent to 9.93 cents per lb at 1:02 pm EST (1802 GMT), dealing from 9.83 to 9.95 cents.
The March open-outcry sugar contract rose 0.02 to end at 9.90 cents per lb, dealing from 9.82 to 9.95 cents. May gain 0.05 to 10.19 cents. The rest went up 0.03 to 0.06 cent. "The supply side is still overhanging the market," said Steve Platt, an analyst for Archer Financials in Chicago, in alluding to a glut in the sweetener.
He added though that steadiness in other commodity markets and possible consumer demand has served to "limit downside pressure", thereby resulting in the current stalemate.
Floor sources said investment fund buying tried to nudge the market toward the psychological 10-cents area, but that producer and trade sales kept a firm lid on values. "It's going to be a tough road to 10 and I don't know if the funds can do it," one long-time floor dealer for a financial house said.
Aside from the glut in sugar, market bulls are aided by the consistent interest for the cane-based alternate fuel ethanol and end-user buying when sugar slips below 9.90 cents, basis March, the analysts said. Technicians feel support in the March contract was at 9.60 and 9.50 cents, with resistance at 10 and 10.36 cents.
Electronic deals in the March contract stood at around 22,577 contracts as of 1:03 pm. Open-outcry volume around noon was at 6,100 lots, versus the prior tally of 4,771 lots. Call volume at noon was 7,060 lots while puts hit 3,432 lots. Screen trade on Thursday was 54,931 lots and total volume reached 59,702 lots.
Open interest in the No 11 raw sugar market climbed 4,918 lots to 794,474 lots as of December 6. The ethanol market was untraded. The US electronic domestic No 14 sugar market showed the January contract down 0.15 cent to 19.25 cents at 1:04 pm Screen volume traded on Thursday reached 301 lots while 79 lots were traded in the pit, the exchange said.
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