Raw sugar futures ended lower Thursday on late investor liquidation as the market crumbled in the face of a stronger dollar and weak outside markets, with more losses deemed likely for the sweetener, brokers said. The May raw sugar contract fell 0.24 cent to end at 15.92 cents per lb. Trading range from 15.77 to 16.45 cents.
May volume at 43,640 lots at 2:08 pm (1808 GMT). Last week, contract touched an 11-month low at 15.46 cents. "It's trying to consolidate," said Jack Scoville, analyst for brokers The Price Futures Group in Chicago. After rallying to a 29-year top at 30.40 cents on February 1, the market has nearly halved in value while posting its worst quarterly loss since 1985.
Scoville said there is scope for sugar to probably slide toward 15 cents. But the market has shown little interest in staging a major move at this time, he added. Market participants monitoring pace of harvest in top grower Brazil. Trade worried about a recurrence of the excessive rains, which disrupted Brazil's cane harvest in 2009.
Scoville said sugar needs news and does not seem to be getting any. He said bearish news of large crops in Brazil seem to have been dialed into the market already. Technically, support in the May contract seen at 15.50 and 15 cents. Resistance pegged at 17 and 17.50 cents. Volume traded Wednesday hit 84,368 lots, versus the previous tally of 98,328 lots - ICE data. Open interest in No 11 sugar was at 699,347 lots as of April 7, from the prior tally of 703,555 lots - exchange data.
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