Raw sugar futures finished higher Friday on modest investor short-covering although confidence remained shaky and a further probe lower seems likely in the weeks ahead, brokers said. The key March raw sugar contract rose 0.23 cent to finish at 11.65 cents per lb.
Trading from 11.44 to 11.71 cents. Contract had an inside day since the range was within Thursday's 11.30 to 11.81 cents band. May sugar added 0.21 cent to 11.98 cents. Volume traded in the March contract reached 22,248 lots at 2:09 pm EST (1909 GMT).
"Sugar is playing catch up with the price action in outside markets late yesterday and also holding in a range," said Jack Scoville, vice-president of brokers the Price Group in Chicago." "It seems there is no real appetite for selling now," added Scoville.
Most potential importers are sidelined, doing hand-to-mouth orders and betting on lower prices. Steve Platt, an analyst for Archer Financial Services, said there may still be further liquidation pressure in store for soft commodities. "You still can have dribs and drabs (of that liquidation pressure) going into the end of the year," he said.
The trade is waiting to see if the US will import more sugar in the 2008/09 (August/July) marketing year. The US ordered 300,000 short tons of sugar last August and may import further if the supply situation stays tight. Technicians see support in March at 11 cents, with resistance at 12 and 12.50 cents.
Volume Thursday in the No 11 sugar market at 52,310 lots - exchange data. Open interest for No 11 sugar market fell 816 lots to 637,858 lots as of November 13 - ICE data. The domestic No 14 sugar market showed the January contract up 0.29 cent at 19.75 cents at 2:11 pm volume traded Thursday in the No 14 market reached 221 lots, the exchange said.
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