Raw sugar futures finished up on Thursday after late investor buying drove the market to near its highs for the day and the sweetener may use the momentum to edge up tomorrow, brokers said. The October raw sugar contract went up 0.15 cent to conclude at 12.24 cents per lb, dealing from 11.93 to 12.31 cents.
Volume in the October contract amounted to 42,363 lots as of 2:09 pm EDT (1809 GMT). "The (sugar) market's happy where it is now. It's found some kind of equilibrium," said Sterling Smith, senior analyst for broker FuturesOne in Chicago.
Early investor sales pressure nudged prices down, but trade support and short-covering boosted the market to its highs for the day, dealers said. Analysts said the downside target for the October contract would initially be 11.25 cents, but the market's ability to stay over 12 cents meant it has begun consolidating and building on its gains here.
For market bulls, their talking points are that recent rains may trim yields in Brazil, Indian sugar production should be lower, there will be more ethanol exports by Brazil, and consumer demand should increase.
On the other hand, market bears feel a glut remains burdensome and investment funds could turn sour on sugar. Technicians put support in the October contract at 11.93 and 11.25 cents, with resistance at 12.45 cents. Total deals done Wednesday came to 92,034 lots, exchange data showed.
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