Raw sugar futures trekked up to a strong finish on Wednesday, ignoring the weak commodity complex as firm demand from top consumer India kept buying interest strong and the Liffe white market hit a record high, brokers said. The March raw sugar contract gained 0.38 cent to close at 23.04 cents per lb. The contract traded from 22.60 to 23.17 cents.
March contract volume hit 44,967 lots at 2:00 pm EST (1900 GMT). Raw sugar futures climbed, defying the weak commodity complex and gains in the dollar, on strong demand from top consumer India - traders. The raws also felt support from London's white sugar market, which hit an intraday record high at $629 per tonne, basis March - traders. "People are thinking they (India) are probably going to go toward white sugar instead of raw sugar ... so the arbitrage has got wider." - Rodrigo Costa, vice-president Institutional Sales for Newedge USA.
India's sugar output in 2009/10 will be little lower than previous forecasts of 16 million tonnes, signalling higher imports by the world's biggest consumer - Samir Somaiya, president of the Indian Sugar Mills Association. Volume traded Tuesday in the No 11 sugar market was at 88,816 lots, from the prior 74,673 lots - exchange data. Open interest in the No 11 sugar market was at 780,288 lots as of December 1, from the previous 776,546 contracts - exchange data.
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