US MIDDAY: sugar easier in dull business

04 Dec, 2004

Raw sugar futures finished fractionally softer Friday in dull business featuring small speculators, with the market tipped to remain range-bound due to a dearth of news next week, brokers said. The New York Board of Trade's key March raw sugar contract slipped 0.02 cent to end at 8.80 cents a lb, in a tight band from 8.80 to 8.86 cents. May sugar lost the same to 8.97 cents. The rest were 0.03 cent down to up 0.03 cent.
"The lack of cash news is keeping the market in check," said James Cordier of Liberty Trading Group in referring to a dearth in consumer buying for the sweetener.
The fundamental picture in sugar looks bullish due to forecasts of a supply deficit in 2004/05 and a steady rise in consumer buying from countries like China and India.
Technicians said they feel support in the March contract is at 8.80 and 8.75 cents, while resistance would be at 9.00 and 9.04 cents.

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