Raw sugar futures settled Wednesday at a 3-1/2 month high as heavy fund buying overwhelmed producer sales, and the sweetener could push higher even though the rally may be overdone, analysts said. The New York Board of Trade's March raw sugar contract soared 0.32 cent or 3.56 percent to finish at 9.30 cents a lb, trading from 9.00 to 9.33 cents. It was the highest close for sugar on a spot basis since ending at 9.32 cents on October 12, 2004.
The second position May sugar contract jumped 0.29 cent to finish at the contract peak of 9.58 cents. Distant months climbed from 0.06 cent to 0.19 cent.
Technical players said initial resistance in the March contract would be at 9.32 and then 9.50 cents. Support would be at 9.25 and then down to 9.03 cents.