Raw sugar futures finished lower Tuesday on speculative fund sales but trade and consumer buying cut short their losses which may allow the market to consolidate in the days ahead, brokers said.
The New York Board of Trade's July raw sugar contract fell 0.14 cent to close at 17.03 cents a lb, moving from 16.86 to 17.10 cents. October lost 0.16 to 17.32 cents. The rest dropped 0.12 to 0.16 cent.
Fundamentally, most market players feel a deficit in the market is narrowing but the wild card would still be if a spike in crude prices this summer tempts top grower Brazil to produce more of the biofuel ethanol.