Raw sugar futures settled firmer Friday on brisk late investor buying before a holiday break as the market appears well supported by expected consumer buying in south Asia, brokers said. The raw sugar market will shut Monday for US Presidents Day. Trading resumes Tuesday.
The key March raw sugar contract climbed 0.13 cent to settle at 13.26 cents per lb. Trades spanned from 13.09 to 13.30 cents. Volume traded in the March contract reached 36,731 lots at 1:45 pm EST (1845 GMT). May sugar added 0.08 to 13.57 cents. "Sugar is probably holding up the best of (the soft commodities)," said James Cordier, analyst for brokers optionsellers.com in Florida.
Analysts said sugar swiftly rebounded because of several bullish factors. They said nearby supplies are tight and a sizeable deficit looms. They also point to offtake from India, which could import up to 4.5 million tonnes of sugar. Traders said there were lingering worries over a global recession, but most players were willing to wait and see how a US stimulus and bank rescue plan would work. "We have to see whether the physical buying will keep sugar supported into next week," one said.
Technicians put resistance in the March sugar contract would be at the recent high of 13.35/37 cents. They pegged support at 13 and 12.90 cents. Volume traded Thursday in the No 11 sugar market reached 178,693 lots - exchange data. Open interest for No 11 sugar market was at 675,531 lots as of February 12, from the previous tally of 660,117 lots. The domestic No 14 sugar market showed the March contract untraded at 1:46 pm volume on Thursday in the No 14 market stood at 33 lots - exchange data.
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