Raw sugar futures finished easier Monday on trade sales and investor profit-taking as an early surge fizzled and most brokers feel market direction is dependent on movements in crude. The key July sugar contract sank 0.27 cent to end at 10.86 cents per lb, dealing from 10.68 to 11.33 cents. Volume traded in the contract was at 46,296 lots at 2:18 pm EDT (1818 GMT).
"I think we should be able to bounce back from here. There seems to be pretty good support at that area between 10.60 and 11 (cents, basis July)," a brokerage house dealer said. The main driver for sugar remains the crude market. Spikes in oil prices are seen boosting sugar values because high crude futures would serve to tempt sugarcane producers to churn out more of the alternate fuel ethanol, analysts said.
Technicians feel support in the July sugar contract would be at 10.90 and 10.85 cents, with resistance pegged at 12 and 12.50 cents. Total deals done Friday was at 64,180 lots, the exchange said.
Open interest in the No 11 raw sugar market rose 3,827 lots to 916,973 contracts as of May 16, it added. The US electronic domestic No 14 sugar market showed the July contract up 0.05 cent at 21.10 cents at 2:19 pm. Volume traded Friday in the No 14 sugar market reached 836 lots, the exchange said.
Comments
Comments are closed.