Raw sugar futures settled easier Tuesday on investor sales inspired by a firm dollar and the market may test lower levels over the next few sessions, analysts said. March raw sugar contract slides 0.29 cent to finish at 22.65 cents per lb. March contract moves from 22.60 to 23.30 cents. March volume traded was at 34,592 lots at 2:05 pm EDT (1805 GMT).
Sugar seems inclined to "break to the upside" eventually. - Ralph Preston, analyst for HeritageWestFutures.com in San Diego, California. But technical analysis by Newedge Research in New York shows market may slip in the days ahead. March contract is "testing support in the vicinity of 22.70 to 22.50 (cents)." - Newedge. On the upside, "a close above 23.60 would signal a rise towards 24.00." - Newedge. Analysts said gyrations in the dollar would dictate sugar's direction in modest business over the short haul.A supportive factor for sugar is import demand.
India is seen staying as a steady buyer of sugar going into 2010 - brokers. Indonesia's 2009 sugar output will equal last year's 2.57 million tonnes, but fall short of the official forecast of 2.7 million tonnes as erratic weather cut output. Bangladesh will import 1.1 million tonnes of raw sugar in the current fiscal year to June 2010.
Technicians peg resistance in the March contract at 24.50 and 25 cents, with support at 22.50 and 22 cents. Volume traded Monday in the No 11 sugar market was at 73,987 lots, from the prior 62,571 lots - exchange data. Open interest in the No 11 sugar market was at 774,975 lots as of October 26, from the previous 774,094 contracts - exchange data.
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