Raw sugar futures climbed to a higher close on Monday, after seesawing for part of the session, in thin dealings and on investor buying ahead of the US presidential election, brokers said. The key March raw sugar contract rose 0.16 cent to close at 12.18 cents per lb.
The contract traded from 11.92 to 12.35 cents. May sugar rose 0.17 cent to end at 12.46 cents. Volume traded in the March contract hit 37,948 lots at 2:09 pm EST (1909 GMT). Initial follow-through support from Friday waned as investor selling pushed the market lower in early dealings - US financial house dealer.
Early pressure also spilled over from other commodity markets and as the US dollar pared losses - traders. Chart-based, investor buying following Friday's upward move also supportive - traders. Market turned firm, viewed as ready for a recovery rally after recent losses due to the worst financial crisis in 80 years - traders.
"No matter how you cut it, there will probably be some renewed hope for biofuels starting tomorrow night," - Jack Scoville, a vice-president for brokers Price Group based in Chicago. The US presidential election is Tuesday. Raw sugar, which can be processed into renewable fuel, was up along with other biofuel commodities such as canola, palm and soy oils.
At the start of October, open interest in the No 11 sugar market stood at 705,350 lots. Open interest as of October 31 was at 643,594 lots, up 984 lots on the day. Sugar production was hit by hurricanes in Louisiana and Texas, but American sugar producers said supplies are ample.
Volume Thursday in the No 11 sugar market at 49,564 lots - exchange data. The domestic No 14 sugar market showed the March contract down 0.20 cent at 21.00 cents at 2:09 pm Volume traded Friday in the No 14 market was at 73 lots, the exchange said.
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