Raw sugar futures closed largely firmer Friday on investor buying encouraged by a US rescue plan to stabilise reeling financial markets, but analysts said the mood among most players is one of caution going into next week. The October raw sugar contract shed 0.02 cent to end at 11.65 cents per lb. The trading range was at 11.55 to 11.96 cents.
Benchmark March sugar rose 0.18 cent to finish at 13.64 cents, moving between 13.31 and 13.82 cents. Gains in back months in late trade ranged from 0.06 to 0.20 cent higher. Volume traded in the March contract hit 55,959 lots at 2:09 pm EDT (1809 GMT). "It rebounded a little, but there is just a bit of holding back because people are not sure how this plan will work out. Investors are waiting this out to see what it looks like next week," a dealer for a brokerage house said.
Sugar futures ran up early as news of the rescue plan permeated the market, but the inability to march higher caused the advance to stall, dealers said. Fundamentally, most analysts feel sugar values should increase due to a deficit in 2008/09 and a rise in demand from countries like China and India.
Traders said the market will also be turning its focus to the last legs of switch business as players get out of the October contract before it expires on September 30. Open interest in the October contract was down 3,745 lots to 102,142 lots - exchange data. "We should see that go down to a manageable level and the amount to be delivered will be modest," one broker said.
Volume Thursday in the No 11 sugar market reached 142,957 lots - exchange data. Open interest in the No 11 raw sugar market fell 675 lots to 767,002 lots as of September 18 - ICE Futures US. The domestic No 14 sugar market showed the November contract up 0.05 cent at 22.95 cents at 2:08 pm. Volume traded Thursday in the No 14 market was at 190 lots, the exchange said.
Comments
Comments are closed.