Raw sugar futures settled lower on Friday on investor profit-taking and a firmer dollar as brokers feel the market may see further losses going into next week, analysts said. The key May raw sugar contract retreated 0.21 cent to end at 12.88 cents per lb.
Trading from 12.81 to 13.20 cents. It was almost an inside day since the range was within Thursdays 12.82 to 13.20, cents band. Volume traded in the May contract reached 42,163 lots at 2:08 pm EDT (1408 GMT). July sugar fell 0.15 to finish at 13.26 cents.
"Once this thing failed at 13.20 (cents, basis May), it just dropped and when we fell below 13.00, a lot of people ran out on the market," a senior trading house broker said. Other analysts said there is a chance, sugar futures could come back. They feel that if sugar breaks past and closes over 13.35 cents in the May contract, the market has a shot at scaling 14 cents.
Traders said the market will also be waiting for definite news on what India does over the weekend. Indias government wants to import 2.0 million tonnes of white sugar but must get approval from election officials. "Its a background factor for the market and it would be good to get some resolution on the matter," a dealer said.
Brokers said they were also waiting to see if other countries like Pakistan or Indonesia would need to book orders of sugar in the days ahead. Technicians believe resistance in the May contract is at 13.30/35 and 13.50 cents, with support at 12.50 and 12 cents.
Volume traded Thursday in the No 11 sugar market hit 63,895 lots - exchange data. Open interest for No 11 sugar market at 615,532 lots as of March 11, from the prior tally of 611,203 contracts. The domestic No 14 sugar contract showed the May contract rose 0.11 cent at 18.90 cents at 2:09 pm volume on Thursday in the No 14 market amounted to 957 lots - exchange data.
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