Raw sugar futures closed lower Friday as the market extended a correction after rumbling to a 28-1/2 year peak, but bullish fundamentals kept the market's longer-term outlook positive, analysts said. The key October raw sugar contract fell 0.23 cent to end at 21.98 cents per lb. On Wednesday, the contract finished at 22.97 cents in the highest close on the spot monthly continuation charts since early in 1981.
Since ending at 11.81 cents at the end of 2008, raw sugar values have risen nearly 95 percent at Wednesday's close. The October contract moved from 21.53 to 22.26 cents. October contract volume hit 58,388 lots at 1:52 pm EDT (1752 GMT). March sugar dropped 0.21 cent to end at 23.50 cents. The chances of large imports from India, whose cane crop has been hit by a weak monsoon, has been the catalyst for the market's rally.
Another key factor are weather-caused delays in top grower Brazil, according to analysts. The market will be waiting for further news on the situation in India, especially an update on news that the country's monsoon rains were 56 percent below normal over the past week. Technicians feel resistance in October is at 24 and 25 cents, with support pegged at 21 and 20 cents.
Volume traded Thursday in the No 11 sugar market was 210,729 lots, from the prior 179,402 lots - exchange data. Open interest in the No 11 sugar market was at 843,268 lots as of August 13, from the previous 854,316 contracts - exchange data.
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