Raw sugar futures closed lower Wednesday in range-bound business as most players sat back to digest news on Indian imports and the global sugar deficit in 2009-10, brokers said. The key March raw sugar contracts shed 0.07 cent to finish at 12.59 cents per lb. Trades spanned from 12.52 to 12.73 cents.
Volume traded in the March contract reached 34,600 lots at 1:45 pm EST (1845 GMT). May sugar lost the same as the spot month to conclude at 12.88 cents. Ralph Preston, senior market analyst of Heritage West Financial Inc in San Diego, said sugar "continues to meander" for now. "There's no market-moving news as of yet," he said, adding there seemed little on the news front to spark a major move.
The trade took note of news that S.L. Jain, director-general of the Indian Sugar Mills Association, told Reuters the global sugar balance in 2009-10 will show a deficit of 7.0 to 8.0 million tonnes. Jain said two Indian refineries had contracted to import 800,000 tonnes of raw sugar in recent months. Traders said the market was also influenced by, the movements of the dollar.
Preston believes the March contract will stay in a band from 12 to 13.20 cents. The March contract is also starting to see switch activity as players move positions out of the spot month before it expires at month's end.
Technicians put resistance in March delivery at 13.05/13.07 cents, then up to 13.50 cents, with support at 12 and 11.50 cents. Volume traded Tuesday in the No 11 sugar market reached 101,572 lots - exchange data. Open interest for No 11 sugar market was at 673,225 lots as of February 3, from the previous tally of 676,369 lots.
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