US MIDDAY: sugar falters

17 Aug, 2006

Raw sugar prices buckled from late commodity fund sales to finish Wednesday near session lows and the market may just consolidate near levels representing an 8-1/2 month low, brokers said.
The New York Board of Trade's October raw sugar contract fell 0.14 cent to close at 12.65 cents per lb, moving from 12.60 to 12.93 cents. On Monday, the contract sank 6.4 percent to end at 12.50 cents in the lowest close for the market on a spot basis in 8-1/2 months since ending at 12.43 cents on November 30, 2005. March lost 0.12 to 13.32 cents. Back months retreated 0.15 to 0.22 cent. Technicians see support for the October contract at 12.43 and down to 12 cents. Resistance was at 13 and 13.60 cents.
Volume before the close stood at 46,047 lots, from the previous 45,570 lots. Call volume reached 23,597 lots and puts amounted to 9,524 lots. Open interest in the No 11 raw sugar market fell 3,676 lots to 479,535 lots as of August 15. No deals were done in the ethanol market.

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