NYBOT raw sugar futures settled Tuesday at a fresh 7-week low on speculative fund selling, but analysts said the market may gradually stabilise on steady trade support for the sweetener in the days ahead, brokers said.
October sugar slid 0.08 cent to finish at 7.54 cent a lb, moving from 7.53 to 7.65 cents. On a spot basis, it was the lowest close for sugar since late June when sugar was trading at 7.13 cents.
March fell 0.09 cent to 8.14 cents. Except for one contract, back months declined 0.03 cent to 0.08 cent.
Technicians put resistance in the October contract in the area of 7.79 cents, a former area of support, and then 8.05/08 cents. They pegged support at 7.50 cents. Final estimated volume stood at 47,285 lots, from Monday's tally of 63,267 lots. Call volume reached 6,518 lots and puts hit 5,966 lots. Open interest tumbled 14,317 lots to 315,007 lots as of August 16.