Raw sugar prices ended mixed on Friday as speculative pressure matched up against trade buying in a market where the longer-term trend appears to be negative over the next few weeks, brokers said.
The New York Board of Trade's March raw sugar contract fell 0.07 cent to finish at 11.07 cents per lb, moving from 10.96 to 11.15 cents. May sugar ease 0.03 to 11.32 cents. The rest gained 0.03 to 0.05 cent. "The specs would be leaning on the market but the trade was there when March would go below 11 (cents). But others said most of the bearish news is already in the market and for most consumers, current price levels in sugar are already at attractive levels for importers.
The market lost ground at the start on speculative sales but a move below 11 cents in the March contract ran into trade buying and this forced some speculators to cover positions going into the close of business, the dealers said.
"It's hanging around here for now and it looks like we'll stay near 11 (cents, basis March) until we get some signals on the next move for this market," one said. Technicians see support for the March contract at 11 and 10.50 cents, with resistance at 11.20 and 11.50 cents. Volume before the close stood at 25,233 lots, from the previous count of 41,402 lots.
Call volume reached 2,815 lots and puts amounted to 3,772 lots. Open interest in the No 11 raw sugar market fell 171 to 425,312 lots as of October 5. The ethanol market was untraded. US domestic sugar prices ended mixed. The November contact added 0.10 to 20.45 cents per lb and January lost 0.15 to 20.25 cents. The rest ranged from 0.15 cent easier to 0.03 cent firmer. Volume before the end of business hit 319 lots, from the prior tally of 346 lots.