Speculative fund sales nudged NYBOT raw sugar futures to an easier finish Thursday, although trade and speculative covering pared the markets losses, brokers said.
The market is seen consolidating, but could move higher in the weeks ahead due to bullish fundamentals and the strong appetite of the funds for the sweetener, they said.
October sugar eased 0.02 cent to close at 8.13 cents a lb, dealing between 7.98 cents and 8.19 cents. March lost 0.01 cent to 8.63 cents. Except for one contract, the rest were flat to 0.03 cent softer.
Sugar had rallied to a 17-month high on forecasts of a supply deficit in 2004/05 and increased consumer demand from countries like India, the worlds largest sugar consumer, which is currently suffering from a poor cane crop. Russia, the worlds top importer of sugar, may have also been engaged in small-lot buying in the market.