Raw sugar futures settled down more than 1 percent on Tuesday after a lack of buying incentives sparked profit taking on the previous session's rally. The key October raw sugar contract closed down 0.28 cent, or by 1.3 percent, to finish at 21.78 cents per lb. Trading range for October was between 22.23 and 21.33 cents. Contract volume reached 57,508 by 2:30 pm EDT (1830 GMT), versus Monday's tally of almost 60,000 lots at around that time.
March sugar fell 0.37 cent to settle at 23.32 cents per lb. Mike McDougall, senior vice-president of the Brazil desk at Newedge, Inc, said the market needed evidence of fresh demand amid signs of waning imports from top consumer India. "There's a sugar tender coming out of Mexico and the market's seeing if that may make a difference."
Analysts have said Indian purchases, which have touched 5.0 million tonnes so far for this year, could rise to as high as 7.0 to 8.0 million tonnes in 2009/10. Technicians peg resistance in the October contract at 23 and up to 24.85 cents, with support at 20.50 and 20 cents. Volume traded Tuesday in the No 11 sugar market was at 177,457 lots, from the prior 217,014 lots - exchange data. Open interest in the No 11 sugar market was at 844,751 lots as of September 14, from the previous 841,667 contracts - exchange data.
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