New York sugar ends at 18-month top

Raw sugar futures finished on Thursday at an 18-month high on all-around buying inspired by another spike in commodity markets and brokers said the momentum could spur sugar higher in the days ahead, brokers said. "Funds are buying everywhere today, and sugar is no exception," said Jack Scoville, vice president of brokers the Price Group in Chicago.
The March electronic sugar contract climbed 0.32 cent to trade at 13.07 cents per lb at 1:33 pm EST (1833 GMT), moving from 12.67 to a lifetime high of 13.33 cents, with traded volume at around 31,595 lots.
The March open-outcry sugar contract jumped 0.35 cent or by 2.7 percent to conclude at 13.10 cents after dealing from 12.91 to 13.30 cents. It was the highest close for sugar on a spot daily basis since August 2006. May added 0.37 cent to 13.63 cents. Distant months increased 0.28 to 0.38 cent. Scoville said industry buying was also seen in sugar from those who need to get coverage and waited too long to do so.
He said "there is much less selling pressure" from producers like top grower Brazil which is between harvest. The main center-south cane crop is not due to be harvested until later in the spring. Fundamentally, sugar derives support from the robust belief among investment funds that the sweetener is undervalued and had room to rise further.
The market had been building on its gains, with sugar futures in the pit popping higher at the start and touching off automatic buy orders once the March contract roared past the target of 13 cents, dealers said. "May should make a run toward 14 (cents) once we get March off the board," one said. Open interest in the March contract tumbled 36,375 lots to 159,847 contracts as of February 13.
Technicians put resistance in the open-outcry March contract at 13.50 and 14 cents, with support at 12.50 and 12 cents. Open interest in the No 11 raw sugar market fell 3,159 lots to 975,926 contracts as of February 11. Final open-outcry volume was at 9,716 lots, against the previous tally of 37,945 lots. Call volume was at 47,631 lots and puts hit 17,376 lots. Screen trade Wednesday was 184,433 lots and total volume was 222,378 lots.