Raw sugar futures were higher on Thursday on speculative short-covering, although players feel the market may drift in a band while waiting for news to give it direction on its next move. The New York Board of Trade's key March raw sugar contract climbed 0.08 cent to 8.43 cents a lb, ranging from 8.38 to 8.46 cents.
On Wednesday, the contract closed at 8.35 cents in the lowest finish for sugar on a spot basis since concluding at 8.28 cents on September 28.
May gained 0.06 cent to 8.57 cents. Distant months increased from 0.03 to 0.07 cent.
Small speculators were covering their short positions and dealers said there was no sign of consumer buying to give values a further boost.
Traders said a net long position by the funds in excess of about 60,000 lots meant further liquidation may keep the sweetener under pressure.
Technicians said support in the March raw sugar contract would now be in the region of 8.33 and then down to 8.28 cents, with 8.18 and 8.13 cents further afield. Resistance was seen at 8.50 and 8.55 cents.
Final estimated volume hit about 19,961 lots, down from 45,748 lots previously. Call volume stood at 9,062 lots while puts reached 3,430 lots. Open interest in the No 11 sugar market sank 4,258 lots to 306,858 contracts as of November 3.