Raw sugar futures closed easier Wednesday on late investor sales as profit-taking and possible producer sales knocked the market down from session highs, brokers said. The March raw sugar contract shed 0.08 cent to settle at 22.71 cents per lb. Moving from 22.53 to 23.28 cents.
March volume was at 35,012 lots at 1:52 pm EDT (1752 GMT). The market had surged to levels over 23 cents, basis March, due to a weak dollar. "The dollar's pushing new lows for the year," said James Cordier, analyst for brokers optionsellers.com in Florida. But after running up steadily the past few sessions, sugar lost steam at the session top, with producer sales suspected along with investor profit-taking.
Analysts said sugar seems to have benefited from increased consumer interest during its runup. Pakistan's sugar production was revised up, but the country still needs to import up to 1.0 million tonnes in the coming months. Thai sugar market players said business slowed after New York futures rebounded strongly the past few days.
Going forward, the market is looking at possible offtake from countries like Pakistan, India, Indonesia and even the United States. Technicians believe support in the March contract would be at 22 and 21.50 cents, with resistance at 24 and 25 cents. Volume traded Tuesday in the No 11 sugar market was at 101,276 lots, from the prior 63,346 lots - exchange data. Open interest in the No 11 sugar market was at 760,540 lots as of October 13, from the previous 760,829 contracts - exchange data.
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