Raw sugar futures settled marginally firmer on Friday on thin buying by small investors and the market seemed content to consolidate as many players were still away following the year-end holidays, brokers said. The sugar market was shut on Thursday for New Year's Day. The key March raw sugar contract rose 0.04 cent to conclude at 11.85 cents per lb.
Trades spanned 11.60 to 11.91 cents. It was an inside day as the range was within Wednesday's 11.29 to 11.92 cents band. Volume in March reached 18,688 lots at 2:14 pm EST (1914 GMT). May sugar gained 0.05 cent to end at 12.35 cents. Jack Scoville, vice president of brokers the Price Group said, sugar market seemed to be seeing investment funds "doing some end and first-of-the-year pricing."
"Most people are taking a long weekend. We can fade back next week, I think, after the fund buying of the last couple of days," he added. Going forward, traders said, the annual readjustment of fund positions in sugar would not take place until later in the month. Fundamentally, analysts are looking at a tighter supply situation later in 2009. Analysts said the question was whether demand could hold up, given the likely impact of a global recession.
Stimulus packages approved by a host of governments may inspire some buying, but most players are uncertain how it will play out. Technicians feel support for sugar is at 11 cents, with resistance at 12.05-07 cents. Volume traded Wednesday in the No 11 sugar market hit 76,743 lots exchange data.
Open interest for No 11 sugar markets was 648,439 lots as of December 31, up from the previous tally of 642,954 lots. In domestic No 14 sugar market March was up 0.05 cent at 20.08 cents at 2:15 pm volume on Wednesday in the No 14 market totalled 2 lots exchange.
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