NYBOT raw sugar futures settled lower Wednesday on speculative sales and profit-taking, with the market seen slipping further on follow-through pressure after rallying this week to a 17-month high, brokers said.
October sugar sank 0.23 cent or by 2.74 percent to close at 8.15 cents a lb, dealing between 8.08 and 8.28 cents. March slid 0.17 cent to 8.64 cents and the rest lost 0.14 to 0.20 cent.
"It looks a little shaky to me. There were a lot of longs that came into this market near its highs so they washed out. We ought to go a little lower for now," a senior investment house broker said.
Sugar had soared to a 17-month high due to an expected supply deficit in 2004/05 and increased demand from nations like India, the worlds largest sugar consumer whose domestic cane crop suffered from poor weather.
Speculators hammered the market in early trade, touching off automatic sell orders when October fell below 8.20 cents, floor sources said.
Technicians peg resistance in October delivery at its contract peak of 8.43 cents and then 8.50 cents, with support at 8.08 and 7.97 cents.