NYBOT raw sugar futures settled firmer on Thursday in activity featuring switch trade from players liquidating positions out of spot July, with more rollovers seen before the contract expires next week, brokers said.
July sugar went up 0.12 cent to settle at 7.21 cents a lb, dealing from 7.09 to 7.23 cents. Key October climbed 0.11 cent to 7.71 cents. Distant months increased 0.02 to 0.11 cent. "It's been quietly steady on switching.
The trade is giving it a boost by buying the July/October spread," a senior floor dealer said in alluding to the difference between July and second position October. Open interest in July fell 8,136 to 33,318 lots as of June 23 while open interest in October shot up 6,500 to 161,827 lots.
July expires on June 30. Fundamentally, the market was still looking at the sugar harvest in top grower Brazil and subdued levels of cash activity.
Judy Ganes of J. Ganes Consulting said those overhanging factors meant the market "could be vulnerable to another setback", reflecting her lack of confidence in the markets recent strength.
Sugar opened flat to a smidgen up before the trade and speculative buying which has stoked sugars advance piled in, brokers said.
Technicians feel resistance in the active October contract would be at 8.00 cents, with support at 7.60 cents.
Final estimated volume was at 34,986 contracts, versus the prior tally of 37,978 lots. Call volume hit 6,779 lots while puts touched 4,962 lots. Open interest in the No 11 sugar market fell 237 to 281,334 lots as of June 23.
Ethanol futures closed firmer, with the June contract up 1.00 cent to end at 93 cents a gallon.
The rest added 0.50 to 1.00 cent. Open interest in the ethanol market rose 48 to 544 lots as of June 23.
On Wednesdays final traded volume stood at 107 lots. US domestic sugar prices ended mixed on Thursday. September was flat at 19.83 cents a lb while November fell 0.03 cent to 20.24 cents.
The rest ranged from 0.01 cent up to 0.01 cent easier. Traded volume was 208 lots against the previous 1,011 lots.