Raw sugar futures rambled to a firm close on Thursday on buying by small speculators and spread business, with a dearth of news seen keeping the market range-bound for now, brokers said. The New York Board of Trade's May raw sugar contract rose 0.03 cent to end at 10.22 cents per lb, moving from 10.15 to 10.30 cents.
July added 0.06 to 10.23 cents. One contract aside, the rest gained 0.06 or 0.08 cent. In the IntercontinentalExchange's NYBOT electronic market for sugar, its May contract was up 0.04 cent at 10.23 cents at 1:23 pm (1523 GMT).
"The outright volume has not been all that great. Most of the action has been in spreads. I don't see it doing any differently tomorrow," a floor analyst said. The market opened mixed, slipped to its low for the session and then nudged into positive ground when small speculators bought the market going into the close, dealers said.
But there was little impetus in the market to break out of its current range in the May contract between 10.10 and 10.50 cents, the analysts said. On a fundamental level, attempts to push the market higher have often run into the prospect of large supplies expected to hit the trade from leading producer Brazil and India, the world's biggest consumer of the sweetener.
"We're in a range, and no one seems interested to lead us out of it until the harvest in Brazil gets going," one trader said. Technicians see support for the May contract in the open-outcry pit at 10.10 and 10.07 cents, while resistance was at 10.50 and 11 cents. Open interest in the No 11 raw sugar market fell 2,192 lots to 649,559 contracts as of March 21.
Volume traded around noon stood at 14,666 lots, down from the prior open-outcry count of 19,130 lots. Call volume was 8,660 lots and puts 5,563 lots. NYBOT said Wednesday's electronic volume was at 42,698 lots and total volume was 61,828 lots. There were no deals in the ethanol market.
US domestic sugar prices ended mixed. The May contract was flat at 20.74 cents per lb and July shed 0.05 to 20.85 cents. The rest ranged from 0.02 cent firmer to 0.10 cent softer. On the electronic No 14 sugar market, the May contract increased 0.16 cent to 20.90 cents at 1:24 pm.