Raw sugar futures settled lower Friday on trade and speculative sales, with dealers saying the market may see further setbacks next week when funds commence switching positions out of the spot March contract. The New York Board of Trade's March raw sugar contract declined 0.07 cent to close at 9.15 cents a lb, dealing from 9.02 to 9.18 cents.
On Wednesday, the contract closed at 9.30 cents in the best close for sugar on a spot weekly basis since ending at 9.32 cents on October 12, 2004.
May sugar lost 0.05 cent to end at 9.46 cents. Except for one contract, the rest fell 0.01 or 0.02 cent.
"The trade and locals sold it down but they could not hit (automatic sell) stops below 9.00 (cents, basis March). The trade bought it back and the locals then covered," a senior trading house broker said.
The March open interest stands a huge 213,387 lots as of January 27 and analysts feel they would need the entire month of February to unwind the position and transfer it to back months.