CSCE raw sugar futures closed firmer on Tuesday on modest buying by speculative funds and switch activity as investors rolled positions out of the May contract and into later months, brokers said.
May sugar surged 0.12 cent, or 1.9 percent, to end at 6.43 cents a lb, moving from 6.28 cents to 6.45 cents. July gained the same to 6.70 cents.
Distant months rose between 0.07 cent and 0.10 cent. "We got a little local covering. They got a bit revved up," a senior floor broker said, adding trade accounts were fairly active buyers of the May/July switch.
Short-term market fundamentals continued to be seen as bearish due to stiff freight rates, which have crimped cash demand, and a record Brazilian cane crop, whose harvest and crushing has begun.
Sugar was nudged down to its low for the day before the speculators began a light-covering program, which steadily pushed the market higher, the brokers said.
"It's really been pretty quiet. We're still in a range between 6.05 and 6.50 (basis May). We're already rolling from May, since the contract goes off the board by the end of the month," one trader said.
Open interest in the May contract fell 3,303 lots to 113,755 lots as of Monday, while interest in July went up 2,448 to 68,162 lots.
Technicians said resistance in May would still be at the 6.50/53 cents region and then 6.62 cents.
Support would be at 6.23 and then between 5.95 cents and 6.05 cents. Final traded volume reached 30,249 lots, up from the previous 29,735 lots.
Call volume stood at 6,556 lots while puts were said to be at 3,319 lots. Open interest in the No 11 sugar market fell 758 lots to 270,339 lots as of Monday.
US domestic sugar futures ended mixed on Tuesday. May rose 0.05 cent to 20.75 cents a lb, while July shed 0.02 cent to 20.81 cents.
Except for one contract, the rest were flat to 0.05 cent firmer. Final estimated volume touched 141 lots, from 336 lots previously. The CSCE is a subsidiary of the New York Board of Trade.